New Delhi: Finance Minister Nirmala Sitharaman on Monday spotlighted three critical pressure points for the Indian economy – fuel, fertiliser and forex,
urging policymakers and citizens to focus on what she termed the “3Fs” as the West Asia crisis continues to strain global commodity markets. Speaking at an event in Mumbai, Sitharaman maintained that despite global uncertainties, India’s domestic economic fundamentals remain sound.
“We should appreciate that the challenges are more externally driven. We must also recognise that India’s domestic economic situation remains positive and resilient even today,” she said.
Excise duty cut to cost Rs 1 lakh crore in revenue
Sitharaman said the government’s policy response has been calibrated to protect domestic growth, noting that the reduction in excise duties on petrol and diesel would result in a revenue impact of Rs 1 lakh crore. She acknowledged that apart from elevated crude prices, fertiliser costs had risen to “unimaginable” levels, while high gold prices were creating “some challenges” on the external front, all reinforcing the need to keep the 3Fs at the centre of policy attention.
FM pushes back against pessimistic narrative
Sitharaman took aim at what she described as “naysayers” who have been pushing a cynical and pessimistic narrative in the wake of Prime Minister Narendra Modi’s appeals for public restraint and altruism. “All the good that is being done by the common people themselves, that is forgotten. And a pessimistic, cynical narrative is generated, which is just not right,” she said. The FM added that fearmongering was something India could ill-afford at this juncture. “India cannot afford fearmongering. We need to give confidence to the people with our words and with our actions,” she said.
MSME payment delays a concern
The Finance Minister also flagged the issue of Rs 8.1 lakh crore locked in delayed payments owed to MSMEs, warning that the backlog was weighing on their working capital and hampering growth. She urged public sector undertakings to strictly adhere to the 45-day payment window for MSME dues, calling for faster resolution to ease the financial strain on small businesses.
