Sitharaman said the proposed fund would help the government address disruptions such as supply chain interruptions and sudden economic stresses while maintaining stability in public finances.

The stabilisation fund is intended to provide the government with additional fiscal headroom during periods of volatility in global markets or trade flows, Sitharaman told lawmakers.The proposal comes as the government seeks parliamentary approval for gross additional spending of 2.81 trillion rupees.

According to Sitharaman, part of the additional expenditure will be offset by savings and higher receipts from various ministries and departments.She said the proposed spending adjustments would not increase the government’s overall expenditure beyond the levels outlined in the federal budget.

Sitharaman also proposed additional fertiliser subsidies amounting to about 192.30 billion rupees to cover higher spending under the nutrient-based subsidy policy and payments for urea subsidies.

India’s fertiliser subsidy bill has come under pressure following disruptions to supply routes linked to tensions involving Iran, particularly around the Strait of Hormuz, a key corridor for global fertiliser shipments.

The disruption has pushed up prices for crop nutrients such as urea and ammonia, increasing import costs for major buyers including India.

Sitharaman said the government would ensure there was no shortfall in funds for fertiliser subsidies for farmers.

The ministry said it had summoned Iran’s ambassador in Bangkok to seek clarification on the circumstances surrounding the incident and to obtain details about the attack on the vessel.

In a statement, the Thai Foreign Ministry said it was requesting a formal explanation from Iranian authorities and pressing for an apology over the damage inflicted on the ship.

Officials said the projectile strike triggered a blaze on board, prompting the crew to evacuate the vessel for safety.

The Islamic Revolutionary Guard Corps said in a statement carried by the Tasnim News Agency that the vessel had been “fired upon by Iranian fighters,” according to the report.

The statement did not provide further details about the circumstances that led to the strike.

The Strait of Hormuz, one of the world’s most important maritime chokepoints for energy shipments, has come under heightened scrutiny amid rising tensions linked to the conflict involving Iran and its regional adversaries.

The incident involving the Thai vessel adds to growing concerns about risks to commercial shipping passing through the narrow waterway.