new delhi, May 25
Union Finance Minister Nirmala Sitharaman on Monday stressed the urgent need to focus on what she described as the “three Fs” — fuel, fertiliser and forex — in view of the escalating crisis in West Asia and the ongoing US-Iran conflict, warning that the situation could significantly impact India’s economy as well as the daily lives of common citizens.
Addressing an event organised to mark the 37th anniversary of Small Industries Development Bank of India in Mumbai, the Finance Minister said the conflict in West Asia was not merely a diplomatic or geopolitical matter but one with serious economic implications for countries dependent on energy imports, including India.
“There is a need to focus on the three Fs of fuel, fertiliser and forex,” Sitharaman said while highlighting the possible consequences of rising global crude oil and fertiliser prices triggered by tensions in the region. She admitted that the increase in energy and fertiliser costs had emerged as a major concern for the Indian economy.
The Finance Minister pointed out that higher crude oil prices directly affect transportation, logistics and manufacturing costs, eventually increasing the burden on ordinary consumers. She added that the conflict could also disrupt global supply chains and international trade routes, thereby impacting businesses and exporters.
Referring to the broader economic impact of the ongoing US-Iran war, Sitharaman said the crisis could lead to “higher fuel costs, delayed cargo movement, costlier shipping, shortage of inputs, pressure on working capital and uncertainty in export orders.” According to her, such developments could create additional challenges for industries, especially small and medium enterprises already dealing with volatile global conditions.
Sitharaman further revealed that the Central Government is expected to bear a revenue loss of nearly Rs 1 lakh crore due to the reduction in excise duty on petrol and diesel. The government had earlier cut excise duties in an effort to provide relief to consumers amid rising international crude oil prices and mounting inflationary pressure.
Her remarks come at a time when fuel prices across the country have witnessed repeated hikes by state-run oil marketing companies. Over the last 10 days, petrol prices have increased by Rs 7.35 per litre while diesel prices have gone up by Rs 7.53 per litre, leading to criticism from Opposition parties over inflation and the rising cost of living.
Responding to criticism from the Opposition, Sitharaman attacked what she termed a “pessimistic and cynical narrative” being created around the country’s economic situation. She said that while genuine challenges existed, many positive developments and contributions by ordinary citizens often went unnoticed. “All the good that is being done by the common people themselves is forgotten, and a pessimistic, cynical narrative is generated, which is just not right,” she remarked during her address.
The Finance Minister maintained that most of the current economic challenges facing India are externally driven and linked to global uncertainties rather than weaknesses in the domestic economy. She asserted that India’s economic fundamentals continue to remain strong and resilient despite international pressures.
Emphasising the importance of maintaining confidence among citizens and investors, Sitharaman said India cannot afford fearmongering at a time when the global economy is witnessing instability due to wars, inflation and supply disruptions.
“India cannot afford fearmongering. We need to give confidence to the people with our words and with our actions,” she added.
Her comments are being seen as an attempt by the government to reassure industry and the public amid concerns over inflation, fuel prices and the possible economic fallout of the continuing tensions in West Asia.
