Finance Minister Nirmala Sitharaman on Monday called for a sharper focus on what she described as the three “Fs” – fuel, fertiliser and foreign exchange – as India faces rising global pressures linked to the West Asia crisis and volatility in energy markets. Speaking at an event in Mumbai, she 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,” Sitharaman said. She added that the emphasis on the 3Fs reflects the broader challenge facing the economy as it deals with the energy shock and economic headwinds.

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Her remarks come as India continues to feel the impact of higher crude oil prices and supply disruptions following tensions in the Gulf region and the closure of the Strait of Hormuz due to the US-Israel war on Iran. Sitharaman said elevated prices of crude, fertilisers and gold were creating challenges on the external front and adding pressure on the external sector.

India, the world’s third-largest oil importer and consumer, raised petrol and diesel prices again on Monday. The increase marked the fourth revision in May, as fuel retailers sought to recover some losses linked to global price movements.

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Sitharaman also said the government’s revenue is expected to be hit by ₹1 lakh crore in FY27 due to a reduction in excise duties on fuel. On the MSME sector, she urged public sector undertakings to adhere strictly to a 45-day payment window, saying delayed payments worth around ₹8.1 lakh crore are locked up and affecting liquidity and working capital for small businesses.

She also cautioned against “fear-mongering” and said India should focus on maintaining confidence in the economy even as it navigates external shocks arising from the West Asia crisis. Her remarks underlined the government’s concerns over fuel, fertiliser and foreign exchange as pressure on prices, imports and revenues continues.

Published on: May 25, 2026 4:02 PM IST