New Delhi, Oct. 1 -- India faces challenges in attracting capital flows amid uncertainty over trade relations with the US, volatile crude oil prices and limited participation in global artificial intelligence (AI)-driven investment, the Finance Ministry said in its September Monthly Economic Review.

The report said high-frequency indicators for July-August 2026 point to some moderation in economic activity after 7.8 per cent GDP growth in Q1 FY27. It also flagged renewed global headwinds, including the September oil price spike and near-term pressure on the Indian rupee.

"Geopolitical and geoeconomic uncertainty means that India cannot afford to rest on its post-Covid growth laurels. It has to be earned every quarter," PTI reported, cit...