New Delhi, July 29 -- India's economic activity is expected to remain supported by resilient domestic demand, though renewed geopolitical tensions and commodity price volatility remain key risks to the outlook, the finance ministry said in its July Monthly Economic Review.

The ministry said the economy sustained its growth momentum during the first quarter of FY27 despite heightened global uncertainty. It said domestic reforms, prudent macroeconomic management, swift policy responses and consistent on-ground implementation will remain critical as external conditions evolve.

The global macroeconomic environment remains characterized by elevated uncertainty following the re-emergence of geopolitical tensions in West Asia, which have renew...