Mumbai, Aug. 25 -- The Indian economy continues to demonstrate resilience despite a fragile global environment marked by geopolitical tensions and trade-related uncertainties, with strong domestic demand and rising manufacturing and services activity providing support, the Reserve Bank of India said in its August Bulletin.

The RBI said the global economy is facing challenges from the conflict in West Asia and continuing trade-related uncertainties. The conflict has created risks for supplies of oil and other key commodities and has also weighed on business confidence. New US tariffs have added further uncertainty to international trade.

Despite these headwinds, it also added that the global economy continues to expand, although inflatio...