Economy – India Maintains Economic Stability Amid Rising Global Pressures
Economy – Union Finance Minister Nirmala Sitharaman on Monday said the Indian economy continues to remain stable despite growing international uncertainties, while urging close monitoring of fuel prices, fertilizer costs, and foreign exchange reserves as tensions in West Asia intensify.
Addressing an event in Mumbai marking the 37th foundation anniversary of the Small Industries Development Bank of India (SIDBI), the finance minister said external developments are placing pressure on several sectors, but India’s domestic economic framework remains strong and capable of handling the situation.
Focus on Fuel, Fertiliser and foreign exchange.
Sitharaman highlighted that the government is carefully observing three critical areas — fuel, fertiliser and forex — due to their direct impact on inflation, agriculture and trade stability. She noted that the recent increase in global crude oil prices, along with sharp rises in fertiliser rates, has created financial strain across multiple sectors.
According to the minister, fertiliser costs in international markets have reached extremely high levels, making it necessary for policymakers to remain cautious. She also pointed out that elevated gold prices are adding pressure on India’s external financial position.
The finance minister explained that Prime Minister Narendra Modi’s recent public appeals regarding responsible economic behaviour and collective support should be understood within the context of these global challenges.
Government Highlights Measures to Protect Growth
Speaking about the Centre’s economic response, Sitharaman said policy decisions have been carefully designed to support domestic growth while reducing the burden on consumers. She stated that the reduction in excise duty on petrol and diesel would lead to a revenue impact of nearly Rs 1 lakh crore for the government.
Despite the financial cost, she indicated that the move was necessary to provide relief from rising fuel expenses and help maintain economic momentum.
The minister added that India’s current challenges are largely being driven by international developments rather than weaknesses within the domestic economy. She stressed that maintaining confidence among businesses and citizens is important during periods of global uncertainty.
Finance Minister Criticises Negative Economic Narratives
During her speech, Sitharaman also criticised what she described as overly negative commentary surrounding the economy. Without naming individuals or groups, she said some people were creating a pessimistic atmosphere by suggesting that the country’s economic structure was weakening.
She argued that such narratives ignore the positive contributions being made by ordinary citizens and businesses across the country. According to the minister, spreading unnecessary fear can damage public confidence at a time when stability and trust are essential.
India, she said, cannot afford fear-driven discussions and should instead focus on encouraging confidence through both policy action and public communication.
MSME Payment Delays Raise Concerns
The finance minister also raised concerns regarding delayed payments to micro, small and medium enterprises (MSMEs), calling it a major issue affecting the sector’s growth and liquidity position.
She revealed that around Rs 8.1 lakh crore remains stuck in pending payments owed to MSMEs, placing significant pressure on their working capital requirements. Sitharaman urged public sector undertakings and other organisations to ensure that dues are cleared within the mandatory 45-day payment period.
She said timely payments are essential for the survival and expansion of small businesses, which continue to play a crucial role in employment generation and industrial growth across the country.