Union Finance Minister Nirmala Sitharaman has raised an alarm over the potential revenue loss of nearly Rs 1 lakh crore if excise duties on petrol and diesel are reduced. Speaking at the 37th anniversary event of the Small Industries Development Bank of India (SIDBI), she emphasized that India cannot afford to indulge in fearmongering and called for building confidence among citizens through both words and actions.
Sitharaman Criticizes Pessimistic Narratives
Sitharaman criticized what she described as a pessimistic narrative being promoted by naysayers despite positive economic developments. She urged the nation to focus on the three Fs — fuel, fertilizer, and forex — as the West Asia crisis approaches the three-month mark. The minister highlighted soaring fertilizer prices and elevated gold prices as significant global challenges, but maintained that India's domestic economy remains resilient.
External Factors Driving Pressures
According to Sitharaman, the current pressures on the Indian economy are driven primarily by external factors, while the country's economic fundamentals remain positive. She stressed that the government is committed to maintaining stability and growth, even in the face of global uncertainties.
- Reducing excise duties on petrol and diesel could lead to a revenue loss of nearly Rs 1 lakh crore.
- The West Asia crisis has been ongoing for nearly three months, impacting global markets.
- Fertilizer prices have soared, adding to the challenges faced by the agricultural sector.
- Gold prices remain elevated, reflecting global economic uncertainty.
The finance minister's remarks come at a time when the government is balancing the need to control inflation with the imperative to maintain fiscal discipline. She called for a collective effort to build confidence and avoid panic, asserting that India's economic fundamentals are strong enough to weather the storm.
