India needs forum for tech firms to engage foreign regulators, finance minister says

Mumbai, India - Finance Minister Nirmala Sitharaman has proposed the creation of a forum for Indian technology firms to coordinate their engagement with foreign governments and regulators, according to a statement made on Friday. The platform would enable the companies to interact with foreign authorities before regulatory stances solidify and barriers are erected, Sitharaman argued as she addressed the Global Fintech Forum in Mumbai.

The need for such a forum arises as Indian companies increasingly seek overseas expansion, given the global trend of governments enacting regulations for emerging technologies such as artificial intelligence and tokenization of assets. Sitharaman emphasized that companies venturing abroad can no longer ignore foreign rules, arguing that Indian industry requires more coordinated assistance to navigate these international regulatory landscapes.

According to Sitharaman, a startup cannot be expected to independently understand, engage with, and negotiate various foreign systems. The proposed forum can aid Indian firms in licensing and monetizing their technologies abroad, forming partnerships, and entering new markets with greater confidence. Furthermore, it could identify areas where standards can be made interoperable and share best practices on data and cybersecurity.

Sitharaman noted that some countries have regulations that foster innovation, while others may inadvertently impede new entrants.