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Union Finance Minister Nirmala Sitharaman on Monday (May 25) highlighted rising macroeconomic pressures from fuel, fertiliser and foreign exchange — the so-called “3Fs” — while noting that recent excise duty cuts on petrol and diesel are expected to have a revenue impact of around ₹1 lakh crore.
Speaking at an event marking the 37th anniversary of SIDBI in Mumbai, she said elevated crude oil and fertiliser prices, along with pressure from high gold prices, are adding to external sector challenges even as domestic demand remains resilient.
She said Prime Minister Narendra Modi’s appeal to conserve foreign exchange is particularly important in the current environment, adding that policy responses have been calibrated to protect domestic growth.
The Finance Minister noted that recent excise duty cuts on petrol and diesel are expected to have a revenue impact of around ₹1 lakh crore, but were undertaken to support households and manage inflation pressures.
On the external front, she said rising crude oil and “unimaginable” fertiliser prices, along with high gold prices, were creating pressures that require careful management of the country’s foreign exchange resources.
Sitharaman also cautioned against what she termed a “pessimistic and cynical narrative” about the economy, saying such sentiment does not reflect underlying conditions.
“India cannot afford fearmongering. We need to give confidence to the people with our words and with our actions,” she said, adding that high-frequency indicators continue to show strong domestic demand and economic resilience.
On the MSME sector, she highlighted that around ₹8.1 lakh crore in delayed payments is locked up, affecting working capital and growth. She urged public sector undertakings to strictly adhere to the 45-day timeline for clearing dues to micro, small and medium enterprises.
The Finance Minister said strengthening payment discipline and ensuring liquidity for MSMEs remains a key priority to support India’s broader growth momentum.
-With PTI inputs
Speaking at an event marking the 37th anniversary of SIDBI in Mumbai, she said elevated crude oil and fertiliser prices, along with pressure from high gold prices, are adding to external sector challenges even as domestic demand remains resilient.
She said Prime Minister Narendra Modi’s appeal to conserve foreign exchange is particularly important in the current environment, adding that policy responses have been calibrated to protect domestic growth.
The Finance Minister noted that recent excise duty cuts on petrol and diesel are expected to have a revenue impact of around ₹1 lakh crore, but were undertaken to support households and manage inflation pressures.
On the external front, she said rising crude oil and “unimaginable” fertiliser prices, along with high gold prices, were creating pressures that require careful management of the country’s foreign exchange resources.
Sitharaman also cautioned against what she termed a “pessimistic and cynical narrative” about the economy, saying such sentiment does not reflect underlying conditions.
“India cannot afford fearmongering. We need to give confidence to the people with our words and with our actions,” she said, adding that high-frequency indicators continue to show strong domestic demand and economic resilience.
On the MSME sector, she highlighted that around ₹8.1 lakh crore in delayed payments is locked up, affecting working capital and growth. She urged public sector undertakings to strictly adhere to the 45-day timeline for clearing dues to micro, small and medium enterprises.
The Finance Minister said strengthening payment discipline and ensuring liquidity for MSMEs remains a key priority to support India’s broader growth momentum.
-With PTI inputs
