The government does not intend to alter its Budget estimates at present despite geopolitical tensions and weather-related challenges, Finance Minister Nirmala Sitharaman said on Sunday, stating that existing fiscal provisions are sufficient to absorb the impact of external shocks.
Addressing the NDTV Profit Business Leadership Awards 2026 in Mumbai, Sitharaman said the Centre had earmarked resources to deal with higher energy costs, fertiliser imports and rising insurance expenses for cargo vessels operating through conflict-affected regions.
Her remarks come as continuing uncertainty in West Asia and irregular monsoon rainfall raise concerns over inflation and public finances. India remains vulnerable to fluctuations in crude oil prices because it imports most of its oil requirements, while uneven rainfall has increased the risk of higher food prices.
"We've made a provision, there's some resource kept aside for it... Similarly, for oil, support for import at a higher price for fertilizer 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," Sitharaman said at the NDTV Profit Business Leadership Awards.
"At this stage, I don't think I'll look at my budget number for readjusting," she added when asked whether developments in West Asia and an uneven monsoon would require changes to the government's fiscal projections.
The finance minister said price pressures are being driven by a combination of overseas developments and domestic conditions.
"Inflation therefore cannot be just imported," she said. "It's also our own want of rain and the monsoon being less-than-normal" that can add to price pressures.
She said the El Nino weather pattern had led to uneven rainfall across the country, with some regions receiving excess rain while others experienced a shortfall, adding to inflation concerns.
Investment Outlook
Sitharaman said the economy continued to show signs of strength despite uncertainty in the global environment.
"India's growth momentum remains broad-based and resilient despite external challenges," she said, adding that GST collections, export orders, e-way bill generation, electricity demand, digital payments, and vehicle and tractor sales continued to indicate sustained economic activity.
She also said private sector capital expenditure was gaining traction.
"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.
"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," she added.
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