FM Urges Focus on Fuel, Fertiliser, Forex Amidst Economic Challenges

Why in News?

Finance Minister Nirmala Sitharaman emphasizes the need to focus on fuel, fertilizer, and forex reserves to maintain domestic growth, addressing concerns about economic pessimism.

What Happened

Finance Minister Nirmala Sitharaman has urged stakeholders to focus on fuel, fertilizer, and forex reserves to navigate current economic challenges. She criticized those spreading pessimism about India's economic outlook, emphasizing the government's calibrated policy responses aimed at preserving domestic growth. The FM highlighted the revenue impact of ₹1 lakh crore due to the cut in diesel and petrol excise duties, demonstrating the government's commitment to supporting the economy despite fiscal implications.

Background & Context

The Indian economy is currently facing multiple challenges, including inflationary pressures, global economic slowdown, and geopolitical uncertainties. The government has been implementing various measures to address these challenges, including fiscal and monetary policy interventions. The focus on fuel, fertilizer, and forex reserves is crucial for maintaining economic stability and ensuring energy and food security.

Key Facts & Data Points

• FM urged focus on fuel, fertilizer, and forex.
• Government policy response calibrated to preserve domestic growth.
• Excise duty cuts on diesel and petrol will have a revenue impact of ₹1 lakh crore.
• India is navigating global economic slowdown and geopolitical uncertainties.
• Emphasis on energy and food security.

UPSC Relevance

Papers: GS3 (Economy), GS2 (Governance), Prelims

Topics: Government policies and interventions for development in various sectors, fiscal policy, inflation, energy security, food security.