Mumbai: Finance Minister Nirmala Sitharaman said on Monday that India’s economy continues to show resilience amid global uncertainty, and came out strongly against attempts to paint a “pessimistic and cynical narrative” that presents an inaccurate picture of the country’s growth trajectory.
Addressing the SIDBI foundation day event here, FM Sitharaman pushed back against concerns around India’s economic trajectory. “India cannot afford fear mongering that damages public confidence,” she said, and criticised the “naysayers who decry the achievements of their own people.”
The finance minister hit out at those spreading a “pessimistic and cynical narrative” around India’s economic progress, saying it unfairly ignores the achievements and contributions of ordinary citizens.
She argued that high-frequency indicators continue to point to resilient domestic demand. GST collections remained strong despite the rate cuts in September 2025, while vehicle sales and credit growth across retail, agriculture and MSME segments remain healthy.
Sitharaman also cited CII data, showing private sector expenditure rose 67 per cent year-on-year in September 2025, while corporate profit margins hit their highest level in the March quarter.
She warned that the ongoing conflict in the Middle East could create pressure on India’s economy through higher fuel prices, elevated shipping costs and disruptions to exports, while insisting that India’s broader economic fundamentals remain strong.
Sitharaman said the geopolitical tensions may affect working capital cycles for businesses and create uncertainty around export orders.
“The conflict could affect fuel cost further, leading to costly shipping,” the finance minister said, adding that Indian export cargo had already faced disruptions during the crisis. To minimise the impact, the government simplified customs procedures and allowed exporters to reroute or bring back cargo affected by disruptions, she added.
Sitharaman highlighted Prime Minister Narendra Modi’s recent appeal for austerity amid rising global crude oil, fertiliser and gold prices, saying the pressure on imports had implications for both inflation and foreign exchange reserves.
She also announced several MSME-focused measures, including a co-lending platform between Small Industries Development Bank of India (SIDBI) and regional rural banks aimed at expanding credit access.
She pointed out that the government introduced a special micro credit card under the CGTMSE scheme, allowing Udyam-registered MSMEs to access collateral-free loans of up to Rs 5 lakh. Additionally, the Cabinet has approved ECLGS 5.0, which will enable up to Rs 2.55 lakh crore in loans for MSMEs.
Sitharaman added that the government is likely to absorb a revenue hit of nearly Rs 1 lakh crore in FY27 due to reductions in excise duty on petrol and diesel, a move aimed at shielding consumers and businesses from surging global energy prices.
(IANS)
