Finance Minister Nirmala Sitharaman on Monday said the Indian economy continues to remain resilient despite global uncertainty and criticised attempts to project a “pessimistic and cynical narrative” around the country’s growth trajectory.
Addressing the SIDBI Foundation Day event in Mumbai, Sitharaman pushed back against concerns over India’s economic outlook.
“India cannot afford fear mongering that damages public confidence,” she said, while criticising “naysayers who decry the achievements of their own people.”
The Finance Minister said narratives portraying India’s economic progress negatively fail to acknowledge the contributions and achievements of ordinary citizens.
She said high-frequency economic indicators continue to reflect resilient domestic demand. According to Sitharaman, GST collections have remained strong despite rate cuts introduced in September 2025, while vehicle sales and credit growth across retail, agriculture and MSME sectors continue to remain healthy.
Citing data from the Confederation of Indian Industry, she said private sector expenditure rose 67 per cent year-on-year in September 2025, while corporate profit margins reached their highest level in the March quarter.
Sitharaman, however, cautioned that the ongoing conflict in West Asia could exert pressure on the Indian economy through higher fuel prices, rising shipping costs and export disruptions, even as the country’s broader economic fundamentals remain strong.
She said geopolitical tensions could affect business working capital cycles and create uncertainty in export orders.
“The conflict could affect fuel costs further, leading to costly shipping,” the minister said, adding that Indian export cargo had already faced disruptions during the crisis.
To reduce the impact on exporters, the government simplified customs procedures and allowed affected cargo to be rerouted or brought back, she added.
Sitharaman also referred to Prime Minister Narendra Modi’s recent appeal for austerity amid rising global crude oil, fertiliser and gold prices, saying the increase in imports could impact inflation and foreign exchange reserves.
The Finance Minister also announced several MSME-focused measures, including a co-lending platform between the Small Industries Development Bank of India and regional rural banks to improve credit access.
She said the government has introduced a special micro credit card under the CGTMSE scheme, enabling Udyam-registered MSMEs to access collateral-free loans of up to Rs 5 lakh.
Additionally, she said the Cabinet has approved ECLGS 5.0, which is expected to facilitate loans worth up to Rs 2.55 lakh crore for MSMEs.
Sitharaman added that the government is likely to absorb a revenue impact of nearly Rs 1 lakh crore in FY27 due to reductions in excise duty on petrol and diesel, aimed at protecting consumers and businesses from rising global energy prices.
-IANS
