Innovation, capital flows on agenda as Sitharaman meets industry leaders

Finance minister Nirmala Sitharaman on Tuesday met representatives from capital markets, startups, and the manufacturing sector as part of the government’s pre-budget consultations.

Participants urged the ministry to consider India’s rapidly-evolving startup landscape, proposing measures to deepen innovation, broaden access to capital, and ease regulatory frictions, a person familiar with the discussions said on the condition of anonymity.

“Discussions included lifting manufacturing, increasing job creation and productivity, and strengthening credit flows, financial-system resilience, fintech oversight, digital infrastructure, cybersecurity, and broader policy support,” this person added.

The meeting was also attended, among others, by the department of economic affairs secretary Anuradha Thakur, chief economic adviser V. Anantha Nageswaran, and minister of state for finance Pankaj Chaudhary.

Meanwhile, the Press Trust of India reported that market representatives on Tuesday also asked the government to lower Securities Transaction Tax (STT) on cash market trade, as compared to derivatives, to improve the efficiency of the capital markets.

Pre-budget consultation

To be sure, the finance minister’s pre-budget consultation calendar typically spans a wide spectrum of stakeholders, from farmer groups and agricultural economists to trade unions, education and health experts, employment and skilling bodies, MSMEs, trade and services associations, industry leaders, financial-sector and capital market participants, and representatives from infrastructure, energy, and urban development sectors.

The Union Budget for 2025–26, presented in February, outlined a roadmap for inclusive and resilient growth amid a world unsettled by rising trade tariffs, supply chain realignments, and geopolitical tensions.

It sought to balance welfare and reform, prioritising agriculture, MSMEs, and rural prosperity, while invigorating private enterprise through higher capital expenditure, innovation incentives, and selective tax relief aimed at lifting consumption.

This was the sixth in a series of pre-budget consultations that the ministry of finance has held before finalising the budget for 2026-27. The finance minister typically presents the Union Budget on 1 February.

Last week, Sitharaman met with economists, followed by leaders from the agriculture sector and representatives from small enterprises.

Sitharaman is expected to meet representatives from the banking, financial services and insurance (BFSI), IT, hospitality, and tourism industries, as well as labour unions and leaders from the infrastructure, energy, and urban sectors over the course of the week.

The consultation is slated to conclude on 26 November, with discussions involving social-sector representatives.

Among those present during Tuesday’s meeting were K. Suresh, president of the Association of National Exchanges Members of India (ANMI); Rakesh Kumar Jain of the Commodity Participants Association of India (CPAI); Renu Maheshwari of the Association of Registered Investment Advisors (ARIA) and principal adviser at Finscholarz; Dhirendra Kumar of Independent Advisers Pvt. Ltd.; Kamala, chief regulatory officer at BSE; and Praveena Rai, managing director and chief executive (CEO) of MCX.

They were joined by Motilal Oswal, co-founder and CEO of Motilal Oswal Investment Advisers; Harsh Shah, managing director of IndiGrid Infrastructure Trust; Preeti Chheda, chief financial officer of Mindspace Business Parks REIT; Srini Sriniwasan, vice-chair of IVCA and CEO of Kotak Alternate Assets; Sundeep Sikka, chairman of Association of Mutual Funds in India (Amfi) and MD & CEO of Nippon Life India Asset Management; Navneet Munot, MD of HDFC Asset Management; Vishal Kapoor, CEO of Bandhan Asset Management; Rashim Bagga, CEO of the Association of Portfolio Managers in India; Ashish Wakanakar, founder of EquiPoise Capital Management; Saurabh Mukherjea, founder and chief investment officer of Marcellus Investment Managers; and Rohan Shridhar, chief operating officer and co-founder of Teal India.