New Delhi, May 25 (IANS). Finance Minister Nirmala Sitharaman on Monday said that India’s economy remains strong amid global instability and some people are trying to spread fear in India and this reduces public confidence. Instead of doing this, they should create confidence among the people.
Addressing the gathering at SIDBI’s Foundation Day event, Finance Minister Sitharaman hit out at those spreading a “pessimistic and skeptical view” about India’s economic progress, saying it unfairly ignores the achievements and contributions of ordinary citizens.
He further said that all high-frequency indicators show that domestic demand remains strong. GST collections remain strong despite rate cuts in September 2025, while vehicle sales and credit growth across the retail, agriculture and MSME sectors remain healthy.
Citing CII data, Sitharaman said private sector expenditure increased by 67 per cent year-on-year in September 2025, while profit margins of companies reached their highest level in the March quarter.
However, he said the ongoing conflict in the Middle East could put pressure on India’s economy through higher fuel prices, increased shipping costs and disruption in exports, however, he stressed that India’s macroeconomic fundamentals remain strong.
Sitharaman said geopolitical tensions could impact the working capital cycle of businesses and create uncertainty over export orders.
He announced several MSME-centric measures, including a co-lending platform between Small Industries Development Bank (SIDBI) and regional rural banks, aimed at expanding credit access.
He informed that the government has launched a special micro credit card under the CGTMSE scheme, through which MSMEs registered in the Udyam portal can avail unsecured loans up to Rs 5 lakh. Additionally, the Cabinet has approved ECLGS 5.0, which will make loans up to Rs 2.55 lakh crore available to MSMEs.
Sitharaman further said that the government may face a revenue loss of about Rs 1 lakh crore in fiscal 2027 due to the cut in excise duty on petrol and diesel aimed at protecting consumers and businesses from rising global energy prices.
–IANS
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