Speaking at the 53rd National Management Convention (NMC) 2026 on Tuesday, Finance Minister Nirmala Sitharaman called for a significant shift in how Indian businesses approach corporate governance. She stressed the critical need for companies to clearly separate ownership from management roles, fostering greater transparency and accountability within their structures.
Engage Early, Avoid Adversarial Disputes
Sitharaman highlighted the importance of proactive engagement between businesses and regulatory bodies. She asserted that not every disagreement or difference of opinion needs to escalate into immediate litigation. Instead, the Finance Minister encouraged early, constructive dialogue, urging companies to present evidence and actively participate in consultations to find solutions before disputes become adversarial.
“There is considerable value in engaging early, placing evidence on the table, participating seriously in consultations, and working towards solutions before differences become disputes,” Sitharaman stated.
While acknowledging that legal recourse remains an option, her message underscored a preference for collaborative problem-solving to build a more mature economic environment.
Building Trust and Ensuring Quality
The Finance Minister also touched upon the necessity of building trust between businesses and public institutions. She clarified that trust cannot be demanded but must be earned through consistent, transparent conduct from both sides. For businesses, this involves providing predictability, transparency, and a willingness to listen when interacting with regulators and the government.
Beyond governance, Sitharaman also emphasized quality as a fundamental standard for Indian businesses and institutions. She called for quality to become a national movement, suggesting it should be an inherent part of how institutions operate, rather than merely an external code to be adopted.
Redefining Governance Practices
Sitharaman's comments come amid increasing interactions between the industry and policymakers. Her emphasis is on fostering a culture where sound governance practices evolve organically from an institution's internal conduct and self-imposed standards, rather than being viewed solely as compliance with external regulations. This approach aims to create a more resilient and ethically driven corporate sector in India.