Delays and Lack of Transparency in Regulatory Clearance May Hinder FTAs: FM Nirmala Sitharaman

New Delhi, May 20, 2025 – Union Finance Minister Nirmala Sitharaman on Monday raised concerns over delays and lack of transparency in regulatory clearances, stating that such inefficiencies could seriously hinder the timely conclusion of crucial Free Trade Agreements (FTAs).

Speaking at a trade policy forum organized by the Confederation of Indian Industry (CII), Sitharaman emphasized the need for greater coordination and efficiency among regulatory bodies. She warned that unnecessary delays and opaque decision-making processes could affect India’s global trade relationships and limit its competitiveness.

"India is at a critical juncture in expanding its trade footprint globally. However, delays in regulatory clearances and lack of clarity in procedures can negatively impact the timely conclusion of FTAs. It is essential that all concerned departments work in sync with transparency," Sitharaman said.

India is currently negotiating FTAs with several key partners, including the UK, the EU, Canada, and members of the Gulf Cooperation Council (GCC). These agreements aim to boost exports, create jobs, and strengthen India’s presence in global supply chains.

While praising the recent momentum in FTA talks, Sitharaman stressed the importance of streamlining internal processes, particularly those involving environmental, legal, and financial approvals.

"We must not allow bureaucratic inertia or procedural opacity to jeopardize our strategic trade interests. There needs to be a strong institutional mechanism that ensures accountability and speed in regulatory approvals,” she added.

Industry leaders present at the event echoed the Finance Minister’s concerns, noting that regulatory bottlenecks often discourage foreign investors and reduce India’s credibility as a reliable trading partner.

In response, the Ministry of Commerce is reportedly considering the creation of a single-window system for FTA-related regulatory approvals, aimed at improving coordination between various departments and speeding up the clearance process.

Trade analysts say that with global supply chains undergoing rapid shifts post-COVID, India has a window of opportunity to emerge as a major hub for manufacturing and services. However, they caution that unless systemic hurdles are addressed, the country risks falling behind its competitors.

The Finance Minister concluded by reaffirming the government’s commitment to ease of doing business, both for domestic and international stakeholders. She called on the industry to continue providing feedback that would help refine policy frameworks and improve institutional responsiveness.