Amid opposition's claim that repeated increases in petrol prices will have a cascading effect on every aspect of the economy, Union Finance and Corporate Affairs Minister Nirmala Sitharaman on Monday said that India's domestic economic situation remains positive and resilient. Speaking at the SIDBI Foundation Day programme, Sitharaman said India cannot afford fear-mongering; we need to instil confidence in our people through our words and actions.
"India's domestic economic situation remains positive and resilient even today. Therefore, those naysayers who jump into the scenario as it were and say that it is all falling. There is a section of Indians who very quickly want to decry the achievements of our own people. A pessimistic, cynical narrative is generated, which is just not right. It is wrong because it is fear-mongering. India cannot afford fear-mongering; we need to give confidence to our people with our words and actions. India continues as a robust economy," she said.
Excise duty cut to hit govt revenues by Rs 1 lakh crore
Sitharaman also said that reducing excise duties on petrol and diesel will result in a revenue shortfall of Rs 1 lakh crore for the government.
"The government is estimated to take a revenue impact of over Rs one lakh crore in 2026 after the central excise duty cut on petrol & diesel. To shield citizens from a steep rise in global crude prices, the central excise duty on petrol and diesel was reduced by Rs 10 per litre," she said.
3 Fs of Fuel
Apart from rising crude prices, the fertiliser prices have hit "unimaginable" levels, the FM said, adding that high gold prices are creating "some challenges" on the external front.
There is a need to focus on the three Fs of fuel, fertiliser and forex, Sitharaman said, pointing out that PM Modi's appeals are in this context.
FM also highlighted that the issue of Rs 8.1 lakh crore locked in delayed payments for MSMEs is impacting their working capital and growth. She urged public sector undertakings not to exceed the 45-day window to make payments to MSMEs.
