15 Sep 2025 : Union Finance Minister Nirmala Sitharaman emphasized on Thursday that regulations must be designed to encourage technological innovation instead of suppressing it, as India continues its push to become a global leader in digital transformation and emerging technologies.
Speaking at a technology and policy conference in the capital, Sitharaman said that while regulations are essential to ensure transparency, accountability, and consumer protection, they should not hinder the growth of innovative solutions.
“Technology evolves at a pace much faster than traditional policymaking. Our regulatory frameworks must keep up, striking a balance between oversight and innovation. The goal should be to guide, not choke,” she said.
Promoting Innovation-Friendly Regulations
The minister highlighted sectors like artificial intelligence (AI), fintech, blockchain, and health-tech as critical areas where India has a significant opportunity to lead. She urged policymakers to adopt a principles-based approach rather than rigid, one-size-fits-all compliance models.
Sitharaman acknowledged the challenges regulators face in balancing innovation with concerns about privacy, security, and misuse. “We must be agile and collaborative, engaging with industry experts, startups, and academia to frame effective policies,” she noted.
Startups and Digital India
India has emerged as the world’s third-largest startup ecosystem, with over 100 unicorns, and Sitharaman reaffirmed the government’s commitment to supporting entrepreneurs. She referenced initiatives such as Digital India, Startup India, and the recently launched AI Mission as examples of how India is building a robust tech-driven economy.
“Indian startups are solving problems not just for India but for the world. Regulatory clarity and supportive frameworks will help them scale globally,” she added.
Global Context
The minister also spoke about global cooperation, stressing that technology cannot be governed in isolation. She called for alignment with international standards on issues such as data protection, cross-border digital trade, and AI ethics.
“India must play a leading role in shaping global digital rules that work for emerging economies, ensuring inclusivity and fair participation,” Sitharaman said.
Industry Reactions
Leaders from the technology and startup sectors welcomed Sitharaman’s comments, calling them a positive signal for innovators. “This assurance will give confidence to entrepreneurs working in deep-tech and disruptive fields,” said Ritesh Malik, angel investor and founder of Innov8.
Outlook
Experts believe that with the right regulatory framework, India could accelerate innovation in green technology, digital payments, cybersecurity, and next-generation AI models, creating jobs and boosting GDP growth.
Summary:
Finance Minister Nirmala Sitharaman urged that regulations must promote innovation instead of stifling it, stressing agile policymaking, global cooperation, and startup support to help India become a leader in digital transformation.