New Delhi: India’s Finance Minister Nirmala Sitharaman has called for greater attention to what she described as the “3Fs” — fuel, fertiliser and foreign exchange as the country faces growing economic pressure from rising global oil prices and instability in West Asia.
Speaking at an event in Mumbai on Monday, Sitharaman said India must carefully manage its resources at a time when global markets remain uncertain because of the conflict involving Iran, Israel and the United States. She stressed that conserving fuel, reducing unnecessary spending of foreign exchange and limiting heavy imports of gold are important steps for protecting the Indian economy.
Her remarks came shortly after Prime Minister Narendra Modi urged citizens and industries to avoid wasteful spending and focus on economic stability as international tensions continue to affect energy supplies and trade routes.
India is one of the world’s largest importers of crude oil and relies heavily on shipments passing through the Strait of Hormuz, a key shipping route in the Gulf region. Recent disruptions linked to the conflict have pushed global oil prices higher and increased worries about supply shortages.
The rising cost of crude oil has already started affecting Indian consumers. Petrol and diesel prices have been increased several times this month, putting pressure on household budgets and transport costs. Economists say higher fuel prices could also lead to rising inflation in the coming months.
Sitharaman warned that rising fuel prices are also increasing the country’s import bill and putting pressure on India’s foreign exchange reserves. She said fertiliser imports have also become more expensive because many raw materials come from overseas markets affected by the conflict.
The Finance Minister also raised concerns about gold imports. India is one of the world’s largest consumers of gold, but large scale imports increase pressure on foreign exchange reserves because payments are made in foreign currencies, mainly the US dollar.
She revealed that the government expects to lose nearly one trillion rupees in revenue during the 2026 to 2027 financial year after reducing fuel taxes to ease the burden on consumers.
Meanwhile, the Indian rupee has faced volatility in recent weeks due to rising oil prices and concerns about capital outflows. However, the currency showed signs of recovery on Monday after global oil prices eased slightly following reports of possible progress in peace discussions involving Iran and the United States.
Reserve Bank of India Governor Sanjay Malhotra said the central bank is closely monitoring the foreign exchange market and is prepared to take necessary measures to maintain stability. He said the RBI would do “whatever is required” to ensure orderly movement in the currency market.
Reports also suggest that Indian banks have approached the RBI seeking support to reduce the cost of foreign exchange hedging. The move is aimed at attracting more overseas dollar funding into the Indian economy during a period of global uncertainty.
India is also exploring alternative sources of crude oil outside the Gulf region. According to reports, Indian refiners are increasing purchases from Latin American and African countries to reduce dependence on shipping routes affected by the conflict.
Economic experts say the government’s focus on fuel, fertiliser and foreign exchange reflects serious concerns about the impact of prolonged tensions in West Asia. They warn that if oil prices remain high for a long period, India could face higher inflation, a wider trade deficit and slower economic growth.
Despite the challenges, officials say India’s strong domestic demand and growing industrial sector could help the country manage the current crisis if global conditions improve in the coming months.