“There is considerable value in engaging early, placing evidence on the table, participating seriously in consultations, and working towards solutions before differences become disputes,” she said.
According to the Finance Minister, trust between businesses and public institutions cannot simply be demanded. It has to be built through the conduct of both sides.
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She also said businesses need to provide predictability, transparency and a willingness to listen while engaging with regulators and the government.
“A mature economy should be capable of disagreement without immediately becoming adversarial,” Sitharaman said.
Sitharaman said sound governance should not be viewed simply as a set of external codes that institutions adopt wholesale. Instead, it should develop from how institutions conduct themselves and the standards they hold themselves to.
She also emphasised the need for industry to separate ownership from management, highlighting the importance of clear institutional roles and governance practices.
The comments come as businesses increasingly interact with regulators and policymakers on issues ranging from regulations to industry consultations. Sitharaman’s emphasis was on constructive engagement before disagreements turn into formal disputes, while retaining legal remedies when necessary.
Sitharaman also highlighted quality as another important standard for Indian businesses and institutions.
“The other thread is the standard we hold ourselves to, quality, which must become India’s next national movement,” she said.
