Union finance minister Nirmala Sitharaman on Monday decried "naysayers" – who she said were claiming that everything was "crumbling" – and insisted that India’s economy continues to be resilient.
Speaking at an event to celebrate the 37th anniversary of SIDBI, the finance minister hit out at those creating a “cynical” and “pessimistic narrative” after Prime Minister Narendra Modi's austerity appeals.
"'All the good that is being done by the common people themselves, that is forgotten. And a pessimistic, cynical narrative is generated, which is just not right," she said.
"We should appreciate that the challenges are more externally driven. We must also recognise that India's domestic economic situation remains positive and resilient even today.
"India cannot afford fearmongering. We need to give confidence to the people with our words and with our actions," she added.
She said that India's policy response has been calibrated to preserve domestic growth. The cut in diesel and petrol excise duties would lead to a revenue impact of Rs 1 lakh crore, she said.
Apart from rising crude prices, fertiliser prices have hit "unimaginable" levels, the FM said, adding that high gold prices are creating "some challenges" on the external front.
There is a need to focus on the three Fs of fuel, fertiliser and forex, Sitharaman said, pointing out that PM Modi's appeals were in this context.
However, some "naysayers" have jumped into the situation, claiming that everything is "crumbling", which is not just right, the FM said.
Sitharaman also highlighted that the issue of Rs 8.1 lakh crore locked in delayed payments for MSMEs is impacting their working capital and growth. She urged public sector undertakings not to exceed the 45-day window to make payments to MSMEs.
"The West Asia crisis is not only a diplomatic or geopolitical issue,” she said. “For businesses and common people, it can mean higher fuel cost, delayed cargo, costlier shipping, shortage of inputs, pressure on working capital and uncertainty in export orders.”
Sitharaman acknowledged that it is a challenge for small business units to plan for the future, and also added that the crisis, which has been running for over 80 days now, is also a challenge for countries, including India.
The government's approach is focused on protecting citizens, supporting micro, small and medium enterprises, safeguarding exporters and keeping supply chains moving and maintaining economic stability, she said.
The minister said the government has taken a series of steps to protect exporters, including the simplification of customs formalities, which ensured that enterprises were able to bring back cargo, reroute them or store and trans-ship the stranded cargo.