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Informist, Monday, May 25, 2026

 

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--Sitharaman:Cannot afford fear-mongering, need to give confidence to people 
--Sitharaman: India's domestic econ situation remains positive, resilient 
--Sitharaman: High gold prices creating challenges on external front 
--Sitharaman: High fertiliser prices creating challenges on external front 
--Sitharaman:W Asia crisis leading to input crunch, export order uncertainty 
--Sitharaman: W Asia crisis putting pressure on working capital 
--CONTEXT: Minister Sitharaman speaking at Foundation Day of SIDBI in Mumbai 
--Sitharaman: W Asia crisis leading to delayed cargo, costlier shipping 
--Sitharaman: West Asia crisis causing higher fuel costs
 

 

NEW DELHI – India's economic situation remains positive and resilient despite some challenges on the external front emanating from the West Asia war, Finance Minister Nirmala Sitharaman said Monday. "High international crude prices and very fluctuating one, high international fertiliser prices, unimaginable increase in fertiliser prices, high gold prices, that is creating some challenges on the external front. All these three payments will have to be in foreign exchange," she said at Small Industries Development Bank of India's 37th Foundation Day in Mumbai.  

 

Sitharaman said the West Asia war is more than a diplomatic or a geopolitical issue for businesses and citizens. "It can mean higher fuel cost, delayed cargo, costlier shipping, shortage of inputs, pressure on working capital and uncertainty in export orders," she said.

 

Earlier this month, Prime Minister Narendra Modi had appealed to citizens to cut down on the use of petrol and diesel to help India conserve its foreign exchange reserves. Modi also urged citizens to postpone gold purchases and foreign travel to support the economy and mitigate some of the impact on the economy from the supply issues caused by the West Asia war.
 

Sitharaman also said the Indian economy continues to be robust. "India cannot afford fear-mongering. We need to give confidence to the people with our words and with our action and that's what you're seeing at various levels," she said. This is against the backdrop of the rupee falling over 5% against the dollar since the war began, on apprehensions of a wider current account deficit due to a higher import bill. 

 

To shield citizens and businesses from the steep rise in global crude oil prices, central excise duty on petrol and diesel was reduced by INR 10 per litre, she said. "The government is estimated to take a revenue impact of over INR 1 trillion on this one score in 2026-27 (Apr-Mar) because of this one decision." Moreover, to ensure domestic availability of fuel, an export duty was imposed on exports of petrol, diesel and aviation turbine fuel. "This was done so that domestic consumers, transporters, airlines and businesses get supply stability to protect manufacturing supply chains," she said.

 

Various countries that depend heavily on imported fuel have suffered from price and supply shocks since the war began on Feb. 28. India's dependence on the Persian Gulf region for crude oil and liquefied petroleum gas supplies has also been exposed. Price of crude oil has surged to a four-year high of $122.53 per barrel since the West Asia war began. Before the war it was below $73 per-barrel level.  End

 

US$1 = INR 95.36

 

Reported by Sagar Sen

Edited by Vandana Hingorani

 

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