Union Finance Minister Nirmala Sitharaman said that though the ongoing Middle East conflict has led to an increase in India’s petroleum and fertiliser subsidy bill due to the hike in global prices, the central government continues to hold an adequate resource buffer to manage the situation without any changes in the Budget estimates for 2026-27.
“I have kept buffers which can take care of it and therefore at this stage, I don’t think I will look at my budget number for readjusting,” Sitharaman said at the NDTV Profit Business Leadership Awards function on Sunday, while referring to the government support for oil and fertiliser imports at higher prices.
She noted that the Centre has “some resources kept aside” to meet challenges arising from rising risk insurance premia as ships pass through the war zones.
Sitharaman further highlighted that the deficient monsoon rains due to the El Nino effect added to existing inflation risks.
“Inflation therefore cannot be just imported. It is also our own want of rain and the monsoon being less-than-normal that could also add to price pressures,” the Union Finance Minister said.
Speaking at the event, she mentioned that several key indicators, such as the goods and services tax collections, were pointing towards a resilient economic growth in the country.
She added that the Reserve Bank of India (RBI) has projected a robust 6.6 per cent growth rate for the economy during 2026-27, despite the supply chain disruptions due to the ongoing conflict between the United States and Iran as well as the adverse impact expected on the agriculture sector due to the deficient monsoon.