Daijiworld Media Network – New Delhi

New Delhi, Apr 26: Union Finance Minister Nirmala Sitharaman on Saturday indicated that the government may roll out Covid-era style support measures to cushion the impact of the ongoing West Asia conflict, while calling on industry to boost domestic manufacturing and investment.

Speaking at the ET Awards for Corporate Excellence, Sitharaman said the government is examining support mechanisms for sectors affected by supply disruptions, rising input costs and insurance risks.

“There is a discussion on support similar to what was given during Covid under the emergency liquidity credit guarantee scheme for units impacted by raw material disruptions and rising prices,” she said.

The minister said the government would prioritise ensuring the availability of key inputs such as fertilisers and energy, even if it leads to fiscal pressures.

Recalling the pandemic response, she said the Centre had procured fertilisers at high global prices to avoid shortages without passing on the burden to farmers, indicating a similar approach could be adopted if the current crisis intensifies.

On energy security, Sitharaman reiterated that India would continue to source crude oil based on national interest.

“We will source from wherever it is available, cheaper and can be supplied on time to meet our requirements,” she said.

Addressing concerns over foreign direct investment (FDI), she acknowledged recent outflows and some weakness in inflows, noting that investment decisions are influenced by global and strategic factors beyond economic indicators.

On demands for changes in capital gains tax and securities transaction tax, the minister said the matter is under review and no decision has been taken yet.

Sitharaman stressed that the government’s policy approach would aim to balance growth, inflation and stability simultaneously, while remaining alert to emerging risks.

She also urged corporates to step up investment and focus on reducing import dependence.

“Every import presents an opportunity for domestic manufacturing. India’s domestic market offers immense potential,” she said.

The finance minister called for greater agility among industry players, particularly in adopting new technologies, as global uncertainties continue to pose challenges to economic stability.