India Finance Minister Flags Risks From Middle East Crisis

FM Nirmala Sitharaman says India’s economy remains resilient despite global uncertainty and rising geopolitical tensions.

Speaking at the 37th Foundation Day of Small Industries Development Bank of India, the Finance Minister said high frequency indicators continue to show strong and broad based domestic demand.

She said the government’s approach will focus on protecting citizens, supporting exporters and maintaining economic stability during global uncertainty.

Sitharaman stressed that Prime Minister Narendra Modi’s call to conserve foreign exchange reserves remains very important in the current environment.

Rising international crude oil, fertiliser and gold prices are creating challenges for India’s external sector and need close monitoring.

The government will continue focusing on the “3 Fs” which are Fuel, Fertilizer and Foreign Exchange.

She warned that the Middle East crisis could raise fuel costs and delay shipments, impacting consumers and businesses.

Outstanding payments to MSMEs remain a major challenge. The government also expects around Rs 1 trillion in revenue loss from the recent consumption tax cut.

Sitharaman announced an STP based digital joint lending platform to improve MSME credit access in rural and semi urban areas and highlighted the MORE programme to support rural and non farm enterprises. She said MSMEs remain central to India’s long term growth story.

Update: FM Nirmala Sitharaman says govt reviewing investor feedback on taxes, rupee and investments

Union Finance Minister Nirmala Sitharaman said the government remains open to public feedback on all issues, including stock market performance and demands from investors to re-evaluate the tax system. She said the Centre is ready to listen to investors’ concerns and will take their suggestions into consideration.

On the rupee and investments, Sitharaman said the government has received a large number of suggestions from the public as well as through internal consultations across departments. She noted that some feedback was submitted voluntarily by citizens, while other inputs were gathered by the government, adding that every suggestion is currently being reviewed and evaluated.