Mumbai: Union Finance Minister Nirmala Sitharaman has urged close monitoring of the “3Fs” fuel, fertiliser and forex amid rising global uncertainty triggered by the West Asia crisis, while asserting that the Indian economy remains fundamentally resilient.

Speaking at an event marking the 37th anniversary of Small Industries Development Bank of India (SIDBI) in Mumbai, the Finance Minister emphasised that India’s policy response is being carefully calibrated to protect domestic growth and stability.

She also criticised what she called a “pessimistic narrative” being spread by some critics, saying India cannot afford fearmongering at a time of external economic pressure.

Government highlights impact of global crisis

Sitharaman said rising crude oil prices and global supply disruptions are placing pressure on India’s import-dependent economy.

She noted that fertiliser prices have reached “unimaginable” levels, adding to concerns for the agriculture sector, while also highlighting challenges posed by elevated gold prices on the external account.

The Finance Minister reiterated that external shocks, rather than domestic weaknesses, are currently driving most of the economic pressure.

Focus on fuel, fertiliser and forex stability

The Finance Minister stressed the importance of tracking the “3Fs” — fuel, fertiliser and foreign exchange — as key indicators of macroeconomic stability.

Fuel prices remain sensitive due to global crude oil volatility, while fertiliser costs are directly linked to import prices and subsidy pressures.

Forex stability, she said, is critical in managing external balance and ensuring confidence among investors and markets.

Fiscal measures and revenue impact

Sitharaman highlighted that recent cuts in excise duty on petrol and diesel are expected to have a revenue impact of nearly Rs 1 lakh crore.

She said such measures are part of a broader effort to support households and control inflationary pressures arising from global shocks.

The government, she added, continues to balance fiscal prudence with the need to support growth and manage price stability.

Concerns over MSME payments

The Finance Minister also raised concerns over delayed payments to micro, small and medium enterprises (MSMEs), stating that around Rs 8.1 lakh crore remains locked in pending dues.

She said such delays affect liquidity and working capital for small businesses, slowing down growth and investment.

Sitharaman urged public sector undertakings to ensure payments are made within the mandated 45-day period to support MSME financial health.

Economy remains resilient, says government

Despite external challenges, the Finance Minister maintained that India’s domestic economic fundamentals remain strong and resilient.

She said coordinated policy measures and strong consumption demand continue to support growth momentum.

The government, she added, remains committed to ensuring stability while addressing inflationary pressures and global economic uncertainty.

Conclusion

With global energy prices and supply chain disruptions impacting emerging economies, India is focusing on stabilising key economic drivers such as fuel, fertiliser and forex. Sitharaman’s remarks underline the government’s effort to balance external risks while maintaining domestic economic confidence.