Finance Minister Nirmala Sitharaman said India’s economy remains resilient despite global uncertainty
May 25, 2026: Nirmala Sitharaman on Monday said the government is closely tracking the economic impact of the ongoing West Asia crisis, particularly focusing on the “3Fs” — fuel, fertiliser and foreign exchange reserves. Speaking at an event marking the 37th anniversary of Small Industries Development Bank of India, Sitharaman said India’s economic fundamentals remain strong despite external pressures arising from global geopolitical tensions.
The finance minister noted that rising crude oil prices, soaring fertiliser costs and high gold prices have emerged as key concerns for the economy. She also revealed that the recent excise duty reduction on petrol and diesel would lead to a revenue loss of nearly ₹1 lakh crore for the government. Stressing that the challenges are largely “externally driven,” Sitharaman criticised what she described as pessimistic narratives around the economy and said India must avoid fearmongering while maintaining confidence in its domestic economic resilience.
Sitharaman also highlighted concerns regarding delayed payments to MSMEs, stating that around ₹8.1 lakh crore remains stuck in pending dues. She urged public sector undertakings to clear payments within the mandated 45-day timeline. Her remarks come amid increasing concerns over the impact of the West Asia conflict and possible disruption of supplies through the Strait of Hormuz, a critical route for India’s petroleum and fertiliser imports. Fuel prices have already risen sharply over the past two weeks, adding to inflation and import worries.