“As I said, the West Asia crisis, Strait of Hormuz crisis, Russia-Ukraine war crisis, Iran-Israel-US war crisis, the supply chain disruption crisis, the increasing fuel price, fertiliser price… all of which will have to be paid through foreign exchange only. So, these are going to be challenges, but I’m confident… we will be able to handle those challenges which are not of our making,” she said.
Speaking on the sidelines of SIDBI’s 37th anniversary event in Mumbai, Sitharaman also stressed that the government was continuously monitor volatile crude oil prices closely, and was working to ensure the shock was not passed on to the Indian consumer.
“If crude oil prices are growing, one week it is 83, another week 86, 92, 101, 102, 116, we will have to constantly monitor this, but make sure that people are not going to suffer,” she added.
The Finance Minister further said that the Prime Minister’s recent call for Indian citizens to do their bit to help the country reduce the impact of these disruptions should be taken in the right spirit, as they urge focus on key pressure points such as fuel, fertiliser and foreign exchange. To this end, she criticised what she described as a “cynical and pessimistic narrative” around the appeal.
“It (the narrative) is wrong because it is fear-mongering. India cannot afford fear-mongering. We need to give confidence to the people with our words and with our actions,” she said, adding that despite external pressures, India’s domestic economy remains resilient.
One of the PM’s appeals was for Indians to buy less gold, which would in turn mean lower gold imports and a cushion for a rising Current Account Deficit. When asked whether the Finance Ministry was looking at specific measures around this area, like making the existing gold monetisation scheme more attractive for households, she said she was not in a position to comment.
“I am receiving many such suggestions. However, at this moment, I am not in a position to say anything further. Proposals can continue to be sent to me, but I cannot comment more right now,” she said.
She indicated that the government remains open to feedback, even as no immediate policy changes have been announced.
