Union Finance Minister Nirmala Sitharaman on Sunday asserted that the government does not need to revisit its budget estimates despite renewed geopolitical tensions and weather-related risks, emphasising that adequate fiscal buffers have been created to deal with global uncertainties.
No Need for Budget Revision Amid Global Risks
Speaking at the NDTV Profit Business Leadership Awards 2026 in Mumbai, Sitharaman stated that the government had made provisions to absorb the impact of rising oil prices, fertiliser imports and increased shipping costs resulting from global developments. "At this stage, I don't think I look at my budget number for readjusting," the Finance Minister said when asked whether renewed tensions in West Asia and an uneven monsoon would affect the government's fiscal calculations.
Inflationary Pressures: External and Domestic
Sitharaman noted that inflationary pressures could arise from both external and domestic factors. "Inflation, therefore, cannot be just imported, it's also our own want of rain and the monsoon being less than normal, can also add to the inflation," she said during the interaction, referring to supply disruptions, higher fertiliser costs and the impact of El Nino on rainfall.
Fiscal Buffers for Oil, Fertiliser, and Shipping
The Finance Minister highlighted that the Budget includes specific provisions to address these challenges. "We've made a provision, there's some resource kept aside for it... Similarly, for oil, support for import at a higher price for fertiliser import, but yet give it to the farmers at the same price since COVID. So, all this, I have kept buffers which can take care of it," she explained.
Private Investment Showing Improvement
On the topic of private investment, Sitharaman said industry investment has started improving and invited businesses to work closely with the government. "Industry has started investing, the numbers are improving. In fact, it's very encouraging to know that they are investing in sectors which are very critical to India's Atmanirbhar Viksit Bharat," she said, adding, "I would certainly invite industry to engage with the government and see if there are any points of concern or any further facilitation that would be needed."
Broader Economic Resilience
Earlier, addressing the event, Sitharaman said India's economy continues to demonstrate resilience despite global challenges. "India's growth momentum remains broad-based and resilient despite external challenges," she said, adding that indicators such as GST collections, export orders, e-way bill generation, electricity demand, digital payments, and vehicle and tractor sales continue to point to sustained growth.
The Finance Minister's remarks come amid heightened concerns over geopolitical instability in West Asia and an uneven monsoon season that could impact agricultural output. However, the government remains confident that the fiscal buffers built into the Budget will cushion the economy against these headwinds.
