Mumbai, Aug. 25 -- Despite geopolitical frictions in West Asia and fresh US tariffs, India's robust macroeconomic fundamentals continue to cushion the domestic economy, according to the Reserve Bank of India's August bulletin on Tuesday.

According to its state of the economy article, the global outlook remains clouded by these risks, but domestic economic momentum is intact, with high-frequency indicators pointing to sustained activity in manufacturing and services and to double-digit expansion in merchandise exports and imports.

The recovery in the southwest monsoon in July helped kharif sowing move closer to normal acreage, partly mitigating agricultural risks. Headline consumer price index (CPI) inflation edged above RBI's target of ...