Overview
- Finance Minister Nirmala Sitharaman said on Monday that rising and volatile prices for crude oil, fertiliser and gold are putting pressure on India’s foreign exchange outgo and business working capital.
- She defended the Centre’s earlier cut to central excise on petrol and diesel that cost roughly ₹1 lakh crore and described the government’s policy response as calibrated to support MSMEs, exporters and stressed sectors.
- Sitharaman said the government is willing to listen to investors on Long-Term and Short-Term Capital Gains taxation as a way to address weak equity participation and large foreign portfolio investor outflows.
- Markets moved with oil swings after her comments, with a drop in crude prompting a short equity rebound even as FPIs have shown heavy net selling and the rupee remains under pressure.
- The opposition pressed a different point on Tuesday, calling for action on falling private investment and arguing that deeper confidence and investment weaknesses need policy fixes beyond external‑shock relief.