Finance Minister Nirmala Sitharaman emphasized India’s economic resilience amidst global uncertainties during the SIDBI foundation day event in Mumbai. She criticized the spread of a negative narrative that fails to acknowledge the country’s growth trajectory and achievements. Sitharaman highlighted that despite concerns, high-frequency indicators like GST collections, vehicle sales, and credit growth in various sectors reflect strong domestic demand.
She pointed out that private sector expenditure surged by 67% year-on-year in September 2025, with corporate profit margins reaching a peak in the March quarter according to CII data. Sitharaman cautioned about potential economic pressures due to the ongoing conflict in the Middle East, affecting fuel prices, shipping costs, and export disruptions. Despite these challenges, she affirmed India’s robust economic fundamentals.
The Finance Minister raised concerns about the impact of geopolitical tensions on business working capital cycles and export orders. She mentioned the government’s efforts to streamline customs procedures and assist exporters affected by disruptions. Sitharaman also highlighted Prime Minister Narendra Modi’s call for austerity in light of rising global commodity prices, emphasizing the implications on inflation and foreign exchange reserves.
Sitharaman announced initiatives to support MSMEs, including a co-lending platform with SIDBI and rural banks for enhanced credit access. She introduced a micro credit card under the CGTMSE scheme for Udyam-registered MSMEs to access collateral-free loans up to Rs 5 lakh. Additionally, the Cabinet approved ECLGS 5.0, facilitating loans up to Rs 2.55 lakh crore for MSMEs. The Finance Minister mentioned a potential revenue loss of around Rs 1 lakh crore in FY27 due to excise duty reductions on petrol and diesel to mitigate the impact of soaring global energy prices.
