Tata dispute must be settled amicably and out of public view, says Sitharaman
Sitharaman says the Tata dispute should be settled among the parties and kept out of public view. She also says she recognises demands for equity support ahead of her tenth budget.
Finance Minister Nirmala Sitharaman has stated that the ongoing dispute within the Tata group should be resolved amicably by the stakeholders involved, without drawing attention to the public. The conglomerate plays a crucial role in India's economy, making any prolonged conflict undesirable, she emphasized during a Financial Express event in Mumbai.
Sitharaman stressed that a resolution requires business acumen and mutual goodwill. She declined to comment on whether the government would intervene to mediate the talks between the two parties.
The controversy revolves around the reappointment of N. Chandrasekaran as chairman of Tata Sons, as well as the potential listing of the holding company on the stock market. Tata Trusts, which holds a 65.9% stake in Tata Sons, opposes the idea of a listing, although some trustees have expressed support. Recently, a distinguished Supreme Court lawyer, Darius Khambata, announced he would not seek another term as a trustee of two prominent Tata Trusts following the board's decision to reappoint Chandrasekaran in September.
During her budget speech, Sitharaman acknowledged concerns over foreign portfolio outflows, though she did not promise any tax relief. She noted that the tax structure in 2023-24, which saw record inflows, remains unchanged, but the situation has evolved with increased outflows from foreign institutional investors. The government has been working on strengthening the bond market and is now receiving calls for similar support in equities.
Sitharaman indicated that the government would first listen to all stakeholders before deciding on any actions to attract foreign investors, given that US Treasuries offer attractive risk-free returns. On tax administration, she highlighted the government's trust-based approach, citing faceless assessment and the upcoming Goods and Services Tax overhaul as examples.
The minister also observed a shift in her perspective towards private-sector investment, noting that companies have become more confident in investing due to the recent GST rate rationalization in September 2025. She dismissed worries about sluggish wage growth and rising corporate profits potentially hurting consumer demand, pointing to the highest October GST collections.
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