New Delhi: Union Finance Minister Nirmala Sitharaman on Monday said that India’s economic challenges are largely external in nature, pointing to rising foreign exchange requirements for imports such as fuel, gold and fertilisers amid global uncertainty.
Speaking in Mumbai, Sitharaman said India continues to remain one of the fastest-growing major economies despite geopolitical tensions and global disruptions. She also criticised attempts to create what she described as a “pessimistic narrative” around the Indian economy.
“Challenges are more external — foreign exchange is needed for gold, fuel and fertiliser imports,” Sitharaman said.
She added that several high-frequency economic indicators continue to reflect strong domestic demand and sustained industrial momentum.
Highlighting the economy’s performance, Sitharaman said gross GST collections crossed ₹22 lakh crore in the financial year 2025-26, marking an 8.3 per cent year-on-year increase.
“That’s not a small number in these times of uncertainty,” she said.
The Finance Minister also noted that private sector capital investment grew by 67 per cent in September 2025 compared to the previous year, indicating growing business confidence.
According to Sitharaman, the government’s economic response has been carefully calibrated to absorb global shocks while supporting businesses and maintaining growth momentum.
The Finance Minister warned that the ongoing West Asia crisis could impact fuel prices, shipping costs, cargo movement, supply chains and export orders.
She said the government’s priority is to protect citizens, support MSMEs, safeguard exporters and ensure supply chains continue functioning smoothly despite external disruptions.
“The approach has been to protect citizens, support MSMEs, safeguard exporters, keep supply chains moving, and maintain economic stability,” she said.
Sitharaman also revealed that the government has created an economic stabilisation fund of over ₹1 lakh crore to deal with unforeseen global shocks and sectoral stress.
According to her, the emergency cushion was planned in advance to help India respond quickly to disruptions caused by geopolitical tensions and supply chain challenges.
