New Delhi, March 5 -- An external member of the rate-setting panel of the Reserve Bank of India (RBI), Nagesh Kumar, said the ongoing conflict in West Asia may create short-term challenges for the Indian economy but is unlikely to affect its long-term growth momentum.

"Going forward, there is a need for fiscal and monetary policies to work in a coordinated manner to push Gross Domestic Product (GDP) growth to a higher trajectory," Kumar noted.

He highlighted that higher oil prices, disruptions to exports to the region and potential impacts on remittances are immediate concerns.

In an interview with PTI via e-mail, Kumar said, "The breakout of the Middle East (West Asia) conflict poses some immediate-term challenges for the Indian econo...