Nirmala Sitharaman To Facilitate Co-ordination Between Finance And Commerce Ministries

Former BJP spokesperson, Nirmala Sitharaman, has been entrusted with the task of ensuring better co-ordination between the Ministries of Finance and Commerce as the government pushes for an economic turnaround. Sitharaman will hold independent charge of the Commerce and Industry Ministry and she is also the Minister of State for Finance and Corporate Affairs.

The two ministries have often been at loggerheads over key policy issues. "What is important is to see where unnecessary overlaps have caused delays. If there is efficiency in bringing activities and departments together, it is beneficial for the country," said Sitharaman.

The first issue that Jaitley and Sitharaman will have to resolve is the foreign direct investment (FDI) policy. The Finance Ministry, which looks after some aspects of the foreign investment policy under the Foreign Exchange Management Act, wants control of the FDI policy, a move strongly opposed by the Commerce and Industry Ministry.

"It appears that Finance (Ministry) will call the shots on a lot of issues, especially (those) related to FDI. However, having a common minister will also mean more synergy between the two departments who have always had turf wars in the past, affecting decision-making," said a Commerce Department official.