Mumbai

Nirmala Sitharaman on Monday emphasised the need to closely monitor the “3Fs” — fuel, fertiliser and forex — amid the ongoing West Asia crisis, while asserting that India’s domestic economy remains resilient despite external challenges.

Speaking at an event marking the 37th anniversary of Small Industries Development Bank of India (SIDBI) in Mumbai, the finance minister criticised what she described as pessimistic narratives surrounding the economy and Prime Minister Narendra Modi’s appeals for public cooperation and restraint.

Sitharaman said India’s policy response to global developments has been carefully calibrated to protect domestic growth. She noted that the Centre’s recent reduction in excise duties on petrol and diesel would have a revenue impact of nearly Rs 1 lakh crore.

Highlighting the economic pressures arising from global tensions, the finance minister said crude oil prices have surged sharply, while fertiliser prices have reached “unimaginable” levels. She also pointed to rising gold prices as a challenge for the country’s external sector.

“There is a need to focus on fuel, fertiliser and forex,” she said, adding that the prime minister’s recent appeals were linked to these concerns.

Without naming anyone directly, Sitharaman accused certain critics of spreading negativity and portraying the economic situation as collapsing.

“Some naysayers have jumped into the situation claiming everything is crumbling, which is not right,” she said.

The finance minister maintained that the difficulties facing the economy are largely externally driven and stressed that India’s domestic economic fundamentals continue to remain strong and stable.

“India cannot afford fearmongering. We need to give confidence to people through our words and actions,” she said.

Sitharaman also raised concerns over delayed payments to micro, small and medium enterprises (MSMEs), stating that nearly Rs 8.1 lakh crore remains locked in pending dues, affecting working capital and growth prospects for small businesses.

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She urged public sector undertakings to ensure payments to MSMEs are made within the mandated 45-day period.