New Delhi: Amid the prolonged crisis in West Asia, the Central government is keeping a close watch on “3Fs”, Union Finance minister Nirmala Sitharaman on Monday.
“There is a need to focus on the three Fs of fuel, fertiliser and forex,” Sitharaman said.
Emphasising that the country’s economic fundamentals remain strong, the Finance minister said that the Centre’s policy response to the global crisis triggered by the US-Iran war has been calibrated to safeguard growth while managing external pressures.
Sitharaman, speaking at an event to mark the 37th anniversary of Small Industries Development Bank of India, said the recent reduction in excise duty on petrol and diesel will result in a revenue loss of nearly Rs 1 lakh crore for the government, PTI reported.
Rising crude oil prices and a significant increase in fertiliser costs are major concerns for the economy, Sitharaman said, adding that fertiliser prices have reached “unimaginable” levels and.
She also remarked that high
gold prices is a challenge on the external sector front.
However, Sitharaman denounced attempts to create panic over the economic situation, criticising “naysayers” for presenting a bleak picture despite what she said were positive efforts being made across the country.
“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,” the Finance minister 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,” Sitharaman claimed.
“India cannot afford fearmongering. We need to give confidence to the people with our words and with our actions,” she added.
The Finance minister raised concerns over delayed payments to micro, small and medium enterprises, saying around Rs 8.1 lakh crore remains locked due to pending dues.
She urged public sector undertakings to ensure that payments to MSMEs are cleared within the mandated 45-day period and warned against unnecessary delays.
Fuel prices in India have been repeatedly increased over the last 11 days, as a result of the Middle East conflict’s economic fallout.
On May 10, Prime Minister Narendra Modi requested citizens to spend judiciously and avoid unnecessary purchases such as gold and foreign travel.