New Delhi, May 30 -- India's near-term economic outlook remains one of "cautious resilience" as domestic fundamentals hold up despite intensifying global shocks from the West Asia conflict, the Department of Economic Affairs said Saturday in its Monthly Economic Review for May.

While PMIs, labour market and forex reserves provide insulation, the department flagged elevated crude prices, tightening financial conditions and a below-normal monsoon as key risks to consumption and inflation in the months ahead.

"The near-term outlook for the Indian economy is one of cautious resilience," the Department of Economic Affairs noted. "Domestic fundamentals remain broadly intact, manufacturing and services PMIs are in expansionary territory, the l...