India’s economy continues to show resilience despite growing global uncertainty triggered by the conflict in West Asia, but rising crude oil prices, inflationary pressures and the risk of a weak monsoon could weigh on growth in the coming months, according to the Department of Economic Affairs’ (DEA) Monthly Economic Review for May released Saturday.
The finance ministry’s economic assessment said domestic fundamentals remain supportive even as the external environment has turned more challenging. Manufacturing and services activity stayed in expansion mode, labour market conditions remained stable and foreign exchange reserves continued to provide a buffer against global shocks.
