Virendra Pandit
New Delhi: Union Finance Minister Nirmala Sitharaman on Monday supported Prime Minister Narendra Modi’s call for austerity and pushed for increased focus on 3Fs — fuel, fertiliser, and forex –amid the ongoing West Asian crisis, underlining that the Indian economy remains resilient.
Addressing an event to celebrate the 37th anniversary of the Small Industries Development Bank of India (SIDBI), she hit out at vested interests for creating a cynical and pessimistic narrative after PM Narendra Modi’s appeals on altruism, pointing out that India cannot afford fearmongering. Giving people confidence is necessary, she added.
Stating that India’s policy response has been calibrated to preserve domestic growth, Sitharaman said the cut in diesel and petrol excise duties will lead to a revenue impact of Rs. 1 lakh crore, the media reported on Monday.
Apart from rising crude prices, the fertiliser prices have hit “unimaginable” levels, she 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.
However, some “naysayers” have jumped to the situation, claiming that everything is “crumbling,” which is wrong.
“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,” she 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,” she said.
“India cannot afford fearmongering. We need to give confidence to the people with our words and with our actions,” she said.
Sitharaman also highlighted that the issue of Rs 8.1 lakh crore locked in delayed payments for the MSMEs is impacting their working capital and growth. She urged public sector undertakings (PSUs) not to exceed the 45-day window to make payments to MSMEs.