Sitharaman flags India’s three biggest economic pressure points – Firstpost

Nirmala Sitharaman on Monday said rising global fuel and fertiliser prices along with foreign exchange pressures have emerged as the biggest economic challenges for India, as geopolitical tensions in West Asia continue to create uncertainty in global markets.

Speaking at the 37th Foundation Day programme of the Small Industries Development Bank of India in New Delhi, Sitharaman said the government is closely monitoring the rapidly changing global situation and taking steps to shield citizens and businesses from external shocks.

“It is because of high international crude prices,” the Finance Minister said while referring to Prime Minister Narendra Modi’s call for conserving foreign exchange. She noted that crude oil prices have remained extremely volatile over the last several weeks due to global instability.

According to Sitharaman, India is currently facing three major external pressure points, fluctuating international crude oil prices, rising fertiliser costs and foreign exchange-related concerns. She said the government’s focus remains on protecting citizens, supporting MSMEs, safeguarding exporters, maintaining supply chains and ensuring overall economic stability.

Despite the external headwinds, the Finance Minister asserted that India’s domestic economic fundamentals remain strong. Highlighting key economic indicators, she said gross GST collections crossed Rs 22 lakh crore during 2025-26, registering an 8.3 per cent increase.

She also pointed to strong demand trends in the economy, saying domestic wholesale tractor sales rose by 26 per cent while passenger vehicle sales grew by 25 per cent, indicating sustained economic activity in both rural and urban markets.

Sitharaman further criticised what she described as “pessimistic” narratives around the Indian economy, saying a section of people tends to undermine the country’s achievements despite strong macroeconomic indicators.

The remarks come at a time when global markets are grappling with geopolitical uncertainty, volatile commodity prices and supply chain disruptions linked to the prolonged tensions in West Asia.