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.