Nirmala Sitharaman backs 3Fs amid West Asia tensions

Nirmala Sitharaman on Monday said the Centre is closely watching the impact of the West Asia crisis on India’s economy. The government is mainly focusing on the “3Fs” — fuel, fertiliser and foreign exchange reserves. She spoke during the 37th anniversary event of Small Industries Development Bank of India (SIDBI). The finance minister said the government has carefully planned its policies to protect economic growth during global uncertainty. She added that India’s economic fundamentals remain stable despite rising international pressure and geopolitical tensions.

At the same time, Sitharaman said the recent excise duty cut on petrol and diesel would reduce government revenue by nearly ₹1 lakh crore. She explained that rising crude oil prices and higher fertiliser costs have become major concerns for the economy. According to the minister, fertiliser prices have reached “unimaginable” levels in global markets. Rising gold prices are also creating pressure on India’s external sector. She stressed that the government must keep a close watch on fuel, fertiliser and forex reserves to maintain economic stability.

FM Rejects Negative Economic Narrative

Meanwhile, the finance minister criticised attempts to create panic about the country’s economy. Without naming anyone directly, she said some people continue to spread a negative narrative despite positive developments across the country. Sitharaman said many people ignore the contribution of ordinary citizens and focus only on pessimistic views. According to her, such narratives create unnecessary fear among the public.

Furthermore, the minister said most of the present economic challenges are externally driven. She added that India’s domestic economy continues to remain resilient during global instability. Sitharaman also said the country cannot afford fearmongering during such sensitive times. She stressed that both government actions and public communication should help build confidence among citizens. According to her, maintaining trust and stability is extremely important during global uncertainty.

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Sitharaman flags MSME dues, fuel prices

Apart from global concerns, Sitharaman also raised the issue of delayed payments to micro, small and medium enterprises (MSMEs). She said nearly ₹8.1 lakh crore remains stuck because of pending dues. The minister urged public sector undertakings to clear payments within the mandatory 45-day period. She also warned officials against unnecessary delays. According to Sitharaman, MSMEs play a major role in economic growth, employment and industrial activity.

In addition, the ongoing West Asia conflict has increased concerns over the possible closure of the Strait of Hormuz. Such a situation could disrupt petroleum and urea supplies, both of which are critical imports for India. Fuel prices have also increased sharply during the past two weeks. State-run oil marketing companies recently increased petrol prices by ₹2.61 per litre and diesel prices by ₹2.71 per litre. Since May 15, petrol prices have risen by nearly ₹7.35 per litre, while diesel prices have increased by around ₹7.53 per litre across the country.

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