New Delhi, Sept. 1 -- India's stronger-than-expected 7.8 per cent GDP growth in the April-June quarter offers reason for optimism, but unresolved geopolitical tensions, the rapid progress of artificial intelligence and volatility in US bond yields mean the country cannot afford to lower its guard, veteran banker Uday Kotak said.

Reacting to the Q1 FY27 GDP data in a social media post, Kotak said India had demonstrated resilience even during what he described as the peak period of the Iran conflict.

"India GDP growth Q1 (April-June) at 7.8%. This was the peak period of Iran conflict. India has shown resilience vis a vis concerns in March and April," Kotak said.

However, he cautioned that several risks remained ahead for the economy.

"H...