Union Finance Minister Nirmala Sitharaman has stressed the critical need for India to focus on fuel, fertiliser, and forex to maintain its economic resilience amidst the ongoing West Asia crisis, while also cautioning against pessimistic narratives.
Key Points
- Union Finance Minister Nirmala Sitharaman has called for a heightened focus on fuel, fertiliser, and forex to navigate the economic challenges posed by the West Asia crisis.
- Sitharaman criticised 'naysayers' for generating pessimistic narratives, emphasising that India's domestic economy remains resilient despite external pressures.
- The government's calibrated policy response includes excise duty cuts on diesel and petrol, incurring a revenue impact of Rs 1 lakh crore.
- High crude and fertiliser prices, along with rising gold prices, are creating external challenges for the Indian economy.
- The Finance Minister also highlighted the issue of Rs 8.1 lakh crore in delayed payments to MSMEs, urging public sector undertakings to adhere to a 45-day payment window.
Union Finance Minister Nirmala Sitharaman on Monday called for increased focus on 3Fs -- fuel, fertiliser and forex -- amid the West Asia crisis, underlining that the domestic economy continues to be resilient.
Speaking at an event to celebrate the 37th anniversary of SIDBI in Mumbai, the FM hit out at naysayers for creating a cynical and pessimistic narrative after PM Narendra Modi's appeals on altruism, pointing out that India cannot afford fearmongering and that giving the confidence to people is necessary.
Addressing Economic Resilience and External Challenges
Stating that India's policy response has been calibrated to preserve domestic growth, FM said the cut in diesel and petrol excise duties will lead to a revenue impact of Rs 1 lakh crore.
Apart from rising crude prices, the fertiliser prices have hit "unimaginable" levels, the FM said, adding that high gold prices are creating "some challenges" on the external front.
There is a need to focus on the three Fs of fuel, fertiliser and forex, Sitharaman said, pointing out that PM Modi's appeals are in this context.
Countering Pessimism and Boosting Confidence
However, some "naysayers" have jumped into the situation, claiming that everything is "crumbling", which is not just right, the FM said.
"'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.
"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," the FM said.
"India cannot afford fearmongering. We need to give confidence to the people with our words and with our actions," she said.
Support for MSMEs
FM also highlighted that the issue of Rs 8.1 lakh crore locked in delayed payments for MSMEs is impacting their working capital and growth. She urged public sector undertakings not to exceed the 45-day window to make payments to MSMEs.
