India’s economy strong, no room for fear: FM Sitharaman
Mumbai, May 25: Union Finance Minister Nirmala Sitharaman on Monday called for greater focus on the 3Fs – fuel, fertilizer and foreign exchange – amid the West Asia crisis, stressing that the domestic economy remains strong. She urged Public Sector Undertakings (PSUs) not to delay payments to Micro, Small and Medium Enterprises (MSMEs) beyond the 45-day deadline.
The Union Finance Minister said this while addressing the 37th Foundation Day event of the Small Industries Development Bank of India (SIDBI) in Mumbai, Maharashtra. Sitharaman said that India cannot afford to spread fear, we need to instill confidence in the people.
She urged the countrymen to avoid spreading fear and instead focus on instilling confidence in the people. The Finance Minister stated that India’s economic challenges are primarily external in nature, particularly due to the foreign exchange requirement for imports such as gold, fuel, and fertilizers.
She also noted that some individuals are seeking to create a pessimistic environment. The Finance Minister stated that India continues to be one of the fastest-growing major economies, while several high-frequency indicators consistently point to strong industrial demand and economic momentum.
Sitharaman stated that India’s policy response has been balanced to sustain domestic growth. The Finance Minister stated that the reduction in excise duty on petrol and diesel will have a revenue impact of ₹1 lakh crore. The Finance Minister noted that in addition to rising crude oil prices, fertilizer prices have also reached “unimaginable” levels, while high gold prices are posing “some challenges” on the external front.
She also emphasized that the issue of ₹8.1 lakh crore in pending payments to MSMEs is impacting their working capital and growth. He urged public sector undertakings not to violate the 45-day deadline for making payments to MSMEs.
