Ensuring free and fair markets is not merely an economic need but a democratic one and the Competition Commission of India (CCI) plays an important role against this backdrop, to keep the competition alive in the markets, Union Finance Minister Nirmala Sitharaman said on Tuesday.

Addressing the 16th 'Annual Day Celebrations' of the market watchdog here, FM Sitharaman said that competition drives efficiency, nurtures innovation and benefits consumers.

"For innovation, competition acts as a relentless nudge. In a monopolistic environment, there is no urgency to evolve. Whereas with competition, the fear of being outpaced forces organisations to innovate — in technology, in design, in service, in delivery," she told the gathering.

According to the minister, free and fair markets ensure that no single player can corner resources, suppress choice, or distort price discovery.

"This benefits our consumers," she added.

The enactment of the Competition Act in 2002 was a landmark reform in India’s journey from a centrally planned regime to a market-driven economy, and the Commission has emerged as a key institution in safeguarding the spirit of liberalisation while checking its excesses.

"The mandate of the CCI under the Competition Act is threefold: To promote and sustain competition in markets, to protect the interests of consumers and ensure freedom of trade, and to prevent practices having an adverse effect on competition," the Finance Minister said.

In today’s interconnected and fast-paced global economy, delays in regulatory clearances can lead to uncertainty, disrupt commercial timelines, and potentially erode the intended value of transactions.

"It is, therefore, imperative that regulatory frameworks, while maintaining rigorous oversight, also facilitate swift and seamless approvals for combinations that pose no harm to competition," FM Sitharaman emphasised.

In addition to the traditional challenges, recent years have seen the emergence of new challenges.

Artificial Intelligence technologies raise novel questions about market power, transparency, data access, algorithmic biases, and the scope of competitive harm.

"Free and fair digital markets are challenged by the emergence of gatekeeper platforms, asymmetries in data access and cross-border implications of digital business models. The rise of cross-border digital monopolies demands global cooperation and agile regulation," according to the minister.

India’s ongoing structural reforms -- asset monetisation, disinvestment, and digital public infrastructure -- are all geared towards unlocking market potential and deepening competition.

"In this year’s Union Budget, I had mentioned the importance of a light-touch regulatory framework based on principles and trust to unleash productivity and employment. In the same vein, regulators must be guided by the principle of ‘minimum necessary, maximum feasible’ in order to balance regulatory vigilance with a pro-growth mindset," the Finance Minister highlighted.

The government had also announced that the requirements and procedures for speedy approval of company mergers will be rationalised, and the scope for fast-track mergers will also be widened, and the process made simpler.