All necessary steps required to mitigate the fallout of the Israel-Iran conflict on India will be taken, Union Finance Minister Nirmala Sitharaman said during an interview with CNBC Awaaz on April 18.

Sitharaman said the government will act as and when required.

"Can't say that we are fully ready. As developments unfold, we are preparing to take adequate steps in India's interests," the minister said during the interview.

On April 13, tensions in the Middle East escalated after Iran fired drones and missiles on Israel in an unprecedented revenge attack.

A fallout of the rise in tensions could be the surge in crude oil prices. The global crude oil prices are yet to react negatively. However, any further escalation could push the prices higher, which could balloon India’s import bill as the world’s third-biggest oil importer ships in about 85 percent of its needs.

Sitharaman highlighted that India decided to increase its imports from Russia during the period of volatility in crude prices after Covid-19 pandemic.

"Similarly, in every challenge, we decide to take steps in India's interest after discussions with government departments. And definitely we will remain alert," she said.

Meanwhile, in a separate event, the finance minister said the country has been the fastest growing economy in the past three years and it can continue on the same path in the next few years as well.

"India has been the fastest growing economy in the last three consecutive financial years and this growth can continue in the coming years as well. The next 25 years will be very critical for India," Sitharaman said.

(With inputs from Reuters & PTI)