New Delhi, Sept. 28 -- India's economic outlook is likely to face increasing pressure in the coming months as higher crude oil prices and rising inflation weigh on consumption, rural activity and industrial momentum, BNP Paribas said in a research report.

The brokerage said rising oil prices and commodity inflation would remain a "material challenge" for India in the near term, while higher global interest rates could put additional pressure on domestic monetary policy. It noted that Brent crude had risen above USD 100 a barrel and said the Reserve Bank of India now had less room to keep interest rates unchanged.

The report said India's macro indicators had remained resilient, supported by strong credit growth, auto sales, improving emp...