Finance Minister Highlights Rising Fuel, Fertiliser And Forex Challenges For India

Union Finance Minister Nirmala Sitharaman on Monday said India must closely monitor what she called the “three Fs” — fuel, fertiliser and forex — as global instability and rising crude oil prices continue to exert pressure on the economy. Her remarks came amid a fresh round of fuel price increases and heightened volatility in international energy markets linked to geopolitical tensions in the Middle East.

Speaking at the 37th anniversary event of the Small Industries Development Bank of India in Mumbai, Sitharaman highlighted that fertiliser prices have risen to “unimaginable levels,” while also warning that fuel and foreign exchange movements are creating simultaneous challenges for India’s economic stability. She said the ongoing crisis is affecting multiple sectors at once, making it necessary for policymakers to carefully manage external dependencies.

The Finance Minister’s comments come at a time when petrol and diesel prices in India have been revised for the fourth time in less than two weeks, adding to concerns over inflationary pressures. She noted that India imports nearly 85–90 per cent of its crude oil requirements, making the country particularly vulnerable to global supply disruptions, including those affecting key shipping routes such as the Strait of Hormuz.

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Sitharaman also referenced recent appeals by Prime Minister Narendra Modi urging citizens and industries to reduce non-essential foreign exchange outflows. She said such measures are becoming increasingly important as rising crude oil prices, gold imports, and external shocks collectively impact India’s current account balance and currency stability. The rupee has recently faced downward pressure amid global uncertainty, further highlighting external sector risks.

Despite acknowledging these challenges, the Finance Minister emphasised that India’s domestic economic fundamentals remain strong and resilient. She pointed to indicators such as robust GST collections, steady domestic demand, and improving private sector investment as signs that the economy continues to perform well despite global headwinds. She also pushed back against what she described as “pessimistic narratives,” stating that India’s growth story should not be undermined by selective criticism.

Sitharaman further defended the government’s response to rising fuel prices, noting that excise duty reductions in recent years have resulted in an estimated revenue impact of over ₹1 lakh crore aimed at shielding consumers from sharper price hikes. She also raised concerns over delayed payments to MSMEs, estimating outstanding dues at around ₹8.1 lakh crore, and urged public sector units to ensure timely settlement within the mandated 45-day period to support small businesses and maintain liquidity in the sector.

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