India's Finance Minister Urges Focus on Fuel, Fertiliser, Forex Amid Global Pressures

Finance Minister Nirmala Sitharaman on Monday called for sharper focus on what she termed the three “Fs” — fuel, fertiliser and foreign exchange — amid rising global pressures triggered by the West Asia crisis and volatility in energy markets.

Speaking at an event in Mumbai, Sitharaman said Prime Minister Narendra Modi’s recent appeal to conserve fuel and foreign exchange, and avoid discretionary imports such as gold, should be seen in the context of managing external economic stress.

“The Prime Minister giving a call to conserve foreign exchange, as far as possible, is very important,” she said, adding that the emphasis on the 3Fs reflects the broader challenge facing the economy.

The remarks come as India continues to feel the impact of higher crude oil prices and supply disruptions following tensions linked to the Strait of Hormuz and the wider Gulf region. Sitharaman said elevated prices of crude, fertilisers and gold are adding pressure on the external sector.

India, the world’s third-largest importer and consumer of crude oil, has also seen fuel prices move higher, with petrol and diesel rates increased again on Monday. This marks the fourth revision in May as fuel retailers attempt to attempt to recover losses linked to global price movements.

The finance minister also flagged concerns around fiscal strain, noting that government revenues could take a hit of about ₹1 lakh crore in FY27 due to the impact of reduced excise duties on fuel.

On the MSME sector, Sitharaman urged public sector undertakings to adhere strictly to a 45-day payment window, pointing out that delayed payments worth around ₹8.1 lakh crore are currently locked up, affecting liquidity and working capital for small businesses.

She also cautioned against “fear-mongering,” saying India should focus on maintaining confidence in the economy even as it navigates external shocks stemming from the West Asia crisis.