India's economy resilient, but global risks rising: Finmin

India's economy remains on firm footing, but persistent global headwinds, ranging from trade frictions and policy uncertainty to ongoing geopolitical tensions, could weigh on future growth, according to the finance ministry.

- Rhik Kundu

"These external challenges could potentially impact India's growth trajectory and warrant close and continuous monitoring," the ministry said in the Monthly Economic Review for May released on Friday.

The ministry remains optimistic. "Overall, the outlook for the Indian economy remains positive, demonstrating resilience amid a turbulent global environment, supported by robust domestic demand, easing inflationary pressures, a resilient external sector, and a steady employment situation."