Mumbai: Union Finance Minister Nirmala Sitharaman on Monday called for greater focus on the “3Fs” — fuel, fertiliser and forex — amid the ongoing West Asia crisis, while asserting that the Indian economy continues to remain resilient despite global uncertainties.
Speaking at the 37th foundation day event of Small Industries Development Bank of India in Mumbai, Sitharaman warned that the prolonged conflict in West Asia could lead to higher fuel prices, delayed cargo movement, increased shipping costs, shortages of key inputs, pressure on working capital and uncertainty in export orders.
She said the conflict was not merely a diplomatic or geopolitical issue, but one that would directly affect ordinary citizens and businesses through rising fuel costs and disruptions in trade and supply chains.
The Finance Minister also criticised “naysayers” for creating what she described as a cynical and pessimistic narrative following Prime Minister Narendra Modi’s appeals for austerity. She stressed that India could not afford fearmongering and that maintaining public confidence was essential during challenging times.
Highlighting the government’s economic response, Sitharaman said policy measures had been carefully calibrated to preserve domestic growth. She noted that the reduction in excise duties on petrol and diesel would result in a revenue loss of nearly Rs 1 lakh crore for the government.
Her remarks came hours after petrol and diesel prices were raised for the fourth time in 11 days. Petrol prices increased by Rs 2.61 per litre, while diesel prices rose by Rs 2.71 per litre on Monday, taking the cumulative hike since May 15 to nearly Rs 7.50 per litre amid soaring global crude oil prices triggered by tensions in West Asia.
Sitharaman said the government was bearing a significant financial burden to shield consumers from the full impact of rising oil prices. “The government is sacrificing Rs 1 lakh crore of revenue by cutting excise duties on diesel and petrol,” she said.
Acknowledging the difficulties faced by smaller businesses, the Finance Minister said the conflict, which has continued for more than 80 days, had made future planning increasingly difficult for micro, small and medium enterprises (MSMEs) and exporters.
She added that the government remained focused on protecting citizens, supporting small businesses, safeguarding exporters and maintaining economic stability despite global uncertainty.
Sitharaman also highlighted steps taken to reduce pressure on exporters, including the simplification of customs procedures to help businesses reroute, store and trans-ship stranded cargo affected by disruptions arising from the West Asia crisis.