Mumbai (Maharashtra) [India], May 25 (ANI): Union Finance Minister Nirmala Sitharaman addressed crucial domestic fiscal issues, firmly clarifying the mechanics behind recent petrol and diesel hikes before weighing in on gold optimization, the RBI dividend, and India's growth trajectory amid the West Asia crisis.

Addressing the media on the immediate concerns regarding the rising costs of retail fuel on the sidelines of the TEXPROCIL Export Awards on Monday, FM Sitharaman clarified that price hikes are purely operational and driven by global procurement realities rather than sudden government policy changes.

She revealed that the central government had previously absorbed massive shocks--resulting in a Rs 1 lakh crore fiscal hit from reducing central taxes--to insulate consumers for over two and a half months.

'On one hand, for about 80 days, 75-76 days, we ensured that the burden on the people did not increase... even at that time, a 10-rupee increase would have happened that we absorbed, and that is almost a Rs 1 lakh crore hit on the functional budget. But the increases now are coming from the oil marketing companies because they are the ones who are procuring, setting,' Sitharaman detailed.

When questioned about expanding the Gold Monetization Scheme to make idle household gold more financially lucrative and reduce import reliance, the FM acknowledged that active proposals are being evaluated.

However, she maintained a measured stance on immediate policy shifts, 'The very gold that is within our country--those exact representations have reached me. We don't know--I am not in a position at the moment to say anything more on that.'

Sitharaman also expressed absolute faith in the financial integrity and calculation metrics used by the central bank following its recent landmark dividend announcement.

Dispersing external skepticism around fiscal positioning, she stated, 'Additional provision, I fully trust RBI in having made the calculation and given the dividend.'

She added that the government relies heavily on structured committee formulations to validate these significant fiscal outcomes.

Turning to India's broader macroeconomic outlook against severe global headwinds--including the West Asia crisis, the Russia-Ukraine war, and volatile energy markets--Sitharaman remained highly optimistic.

She asserted that India's domestic foundations remain uniquely insulated.

'No matter how much external pressure there is, our country's production, manufacturing sector, and agriculture--all at their respective levels for the country--ensure that we are still the fastest-growing economy,' she stated.

The Finance Minister attributed this resilience to steady governance and proactive public alignment, concluding, 'We must keep moving forward while maintaining confidence in this government and the Prime Minister... whatever the requests and sentiments of the country's public have been, we have been responding to them from time to time.' (ANI)