Ranit Kr. Singh , New Delhi — Union Finance Minister Nirmala Sitharaman on Monday stated that the government is closely monitoring the economic impact of the West Asia crisis, focusing heavily on the "3Fs"—fuel, fertilizer, and foreign exchange reserves. Speaking at the 37th anniversary of SIDBI, Sitharaman emphasized that India's domestic economic fundamentals remain resilient despite severe external pressures, such as skyrocketing global fertilizer costs and rising crude oil prices. Her remarks coincide with a sharp rise in domestic fuel prices, with state-run oil companies raising petrol by ₹2.61 per litre and diesel by ₹2.71 per litre on Monday, marking a cumulative jump of over ₹7.30 per litre since mid-May.

The crisis has intensified fears over supply chain disruptions following the closure of the Strait of Hormuz, a critical transit route for India's petroleum and urea imports. To combat inflation and ease consumer pressure, the Centre recently reduced excise duties on petrol and diesel, a move the minister revealed will result in a central revenue loss of nearly ₹1 lakh crore. Sitharaman aggressively pushed back against "naysayers" creating a cynical narrative around the economy, stressing that current challenges are strictly externally driven and that fearmongering must be avoided to maintain public and market confidence.

Beyond external shocks, the Finance Minister flagged a major domestic concern regarding the micro, small, and medium enterprises (MSME) sector, revealing that approximately ₹8.1 lakh crore remains locked in delayed payments. She issued a stern warning to public sector undertakings to clear outstanding MSME dues within the mandated 45-day window. This call for operational efficiency aligns with broader government efforts to preserve liquidity as Prime Minister Narendra Modi recently urged citizens to practice cautious spending on luxuries like gold and foreign travel to insulate the economy.