New Delhi, Sept. 28 -- Despite the current geopolitical conflicts, it's not all gloom and doom for the global and Indian economies, DBS Bank managing director and group chief economist Taimur Baig said.

While inflation has risen, demand is still holding up, Baig said in an interview with Mint, indicating that excessive focus on headwinds may have led to an under-appreciation of tailwinds, particularly strong global consumption.

India, he noted, has shown the ability to absorb external shocks and grow at a fast clip without major accommodative monetary or fiscal measures, a sign of improved macroeconomic fundamentals.

"In fact, (India's) fiscal policy is going in the right direction. Monetary policy is largely neutral. It may be tighten...