Union Finance Minister Nirmala Sitharaman on Monday warned that India must closely monitor the “three Fs” — fuel, fertiliser and forex — as global tensions continue to push up costs across the economy. Speaking at the 37th anniversary event of the Small Industries Development Bank of India in Mumbai, she said fertiliser prices had reached “unimaginable levels” and underlined that the Middle East crisis is now having economic consequences far beyond geopolitics.
Sitharaman said the government has already taken a major revenue hit to protect consumers from a sharper rise in fuel prices. She noted that the Centre is estimated to lose over Rs 1 lakh crore because of the excise duty reduction on petrol and diesel. Her remarks came on a day when fuel prices were raised again, marking the fourth increase in less than two weeks and intensifying pressure on households and businesses.
The finance minister stressed that India’s economy remains resilient despite the external shock. She cautioned against what she described as fearmongering and an exaggerated narrative of economic collapse, saying there is a tendency among some critics to ignore the contribution of ordinary citizens and the broader strength of the economy. Her comments were aimed at projecting confidence at a time when global oil markets are under strain.
Sitharaman also said the crisis is affecting daily business operations in concrete ways. Higher fuel prices, she noted, can lead to delayed cargo movement, costlier shipping, shortage of inputs, pressure on working capital and uncertainty in export orders. According to her, this makes the current situation not just a diplomatic or geopolitical challenge, but a direct economic concern for firms and consumers alike.
She also pointed to rising gold prices, saying they are adding pressure on India’s external account. The remarks came shortly after Prime Minister Narendra Modi urged citizens and industries to conserve foreign exchange, avoid non-essential imports, reduce unnecessary overseas spending and even postpone gold purchases for a year. Sitharaman linked this appeal to the need to protect reserves at a time of global volatility.
The finance minister also flagged stress in the MSME sector. She said delayed payments worth Rs 8.1 lakh crore are hurting working capital and slowing growth, and urged public sector undertakings to clear dues within the mandatory 45-day period. She added that strong GST collections, domestic demand and improving private investment continue to support India’s macroeconomic position despite the external headwinds.