New Delhi, March 29 -- The Indian economy faces an uncertain near-term outlook, with the war in West Asia and the blockade of the Strait of Hormuz raising risk to inflation in medium term, the finance ministry's monthly economic review said on Saturday.

The Indian economy faces an uncertain near-term outlook, with the war in West Asia and the blockade of the Strait of Hormuz raising risks to inflation and the merchandise trade balance, the finance ministry's monthly economic review said on Saturday.

The review flagged "subdued" net foreign direct investment (FDI), which has remained negative for five consecutive months. Gross FDI inflows rose to $79.3 billion during April-January FY26, up from $69.2 billion in the same period of FY25. "...