Finance Minister Nirmala Sitharaman, on Monday (25 May) has disclosed that reducing excise duties on petrol and diesel will result in a revenue shortfall of ₹1 lakh crore for the government, even as she defended India’s economic trajectory and pushed back against what she called a deliberately pessimistic narrative being constructed around the country’s growth story.
Sitharaman Puts ₹1 Lakh Crore Price Tag on Petrol and Diesel Duty Relief
Finance Minister on Monday placed a precise fiscal figure on the government’s decision to cut excise duties on petrol and diesel, confirming that the move will result in a revenue impact of ₹1 lakh crore, according to news agency PTI.
Sitharaman made the disclosure at the 37th Foundation Day event of the Small , Maharashtra, where she addressed the country’s economic position, fuel pricing, and the financial health of small businesses.
This comes, as OMCs hiked furl rates for a fourth time on Monday, within 10 days. Since May 15 when petrol and diesel prices were hiked for the first time after a long freeze and today when the prices were hiked for the fourth time, the cumulative rates of the both petrol and diesel have reached nearly ₹7.5 per litre.
The excise duty reduction lowers petrol and diesel prices at the pump for consumers across India, providing direct relief to households and businesses at a time when global energy markets remain deeply unsettled by the continuing crisis in West Asia.
India’s Challenges Are Largely External, Sitharaman Says
Sitharaman alleged the primary sources of strain outside India’s borders rather than within its own policy framework were responsible for pressures bearing down on the Indian economy.
The Finance minister said India continues to be one of the fastest-growing major economies in the world, pointing to a range of high-frequency indicators that, in her view, demonstrate sustained industrial demand and continued economic momentum.
“Challenges are more external — foreign exchange is needed for gold, fuel and fertiliser imports,” Sitharaman said.
The observation reflects a the structural reality for India, which depends heavily on imports for three of its most significant foreign exchange outflows: gold, crude oil and petroleum products, and fertilisers. All three are sensitive to global commodity cycles and currency movements.
FM Pushes Back Against “Pessimistic Narrative” on Indian Economy
Sitharaman also used the Mumbai platform to directly address what she described as an effort by certain sections to cast doubt on India’s economic achievements, particularly at a moment of external pressure.
She said there are those who want to decry “our own achievements amid the challenges posed by “, characterising such commentary as unhelpful and inaccurate.
She added that some sections were trying to “decry and create a pessimistic narrative”, which she said was “not right.”
The Finance Minister’s remarks came against the backdrop of ongoing debate about the pace and quality of India’s growth, with critics pointing to pressures on household consumption, inflation, and currency volatility.
Sitharaman to Public Sector Units: Clear MSME Dues Within 45 Days
Alongside her remarks on the broader economy and fuel pricing, the Finance Minister delivered a direct message to India’s public sector undertakings, urging them to comply with the mandated 45-day window for making payments to micro, small, and medium enterprises.