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‘PM’s forex conservation appeal very important amid escalating West Asia crisis,’ says FM Nirmala; assures India’s economy remains positive

Statesman News Service

'PM’s forex conservation call very important amid West Asia crisis', says FM Nirmala; assures India’s economy remains resilient


Union Finance Minister Nirmala Sitharaman today asserted that Prime Minister Narendra Modi’s appeal to conserve foreign exchange “as far as possible” has become increasingly significant as the escalating West Asia crisis threatens to push up fuel costs, disrupt supply chains and create uncertainty for businesses across sectors.

Addressing the SIDBI Foundation Day event in Mumbai, Sitharaman also reassured citizens that despite global turbulence, India’s domestic economy continues to remain stable and resilient. She also cautioned against fear-driven narratives about the country’s economic outlook.

 

West Asia conflict could hit fuel, trade and supply chains

Highlighting the economic risks arising from the ongoing tensions in West Asia, the Finance Minister said the impact extends far beyond diplomacy and geopolitics, directly affecting trade, logistics and everyday business operations.

She said rising global instability could lead to higher fuel prices, delays in cargo movement, increased shipping expenses and shortages of critical inputs. According to Sitharaman, such disruptions could also place pressure on working capital requirements and affect export orders for Indian businesses.

The Minister said the Centre’s priority remains protecting citizens from global shocks while ensuring support for MSMEs and exporters. She stressed that maintaining uninterrupted supply chains and preserving economic stability remain key areas of focus for the government amid the evolving international situation.

In that context, Sitharaman underlined the importance of the Prime Minister’s call to minimise unnecessary foreign exchange outflows.

‘India continues as a robust economy’

Sitharaman strongly defended India’s economic position, asserting that the country remains resilient despite external challenges and warning against pessimistic commentary that could weaken public confidence.

She criticised what she called “fear-mongering” by sections that quickly project negative narratives about the economy during periods of global uncertainty. According to the Finance Minister, such reactions undermine the achievements of Indians and create unnecessary anxiety.

Emphasising the need for confidence and stability, she said India cannot afford cynical narratives at a time when the country continues to maintain economic strength despite international pressures.

Over Rs 1 lakh crore revenue impact expected after fuel duty cut

The Finance Minister also said the Union government is expected to absorb a revenue impact exceeding Rs 1 lakh crore in 2026 following the reduction in central excise duty on petrol and diesel.

She noted that the Centre had cut excise duty on both fuels by Rs 10 per litre in an effort to shield consumers from a sharp rise in global crude oil prices.

Sitharaman said the decision reflected the government’s commitment to protecting citizens from inflationary pressures triggered by international market volatility.

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