New Delhi, April 29 -- India's economic growth faces downside risks from the ongoing West Asia conflict and the possibility of below-normal monsoon rains, both of which could add inflationary pressures, the finance ministry cautioned in its latest monthly economic review released on Wednesday.

However, strong domestic demand, supportive policy buffers, and robust public investment are likely to cushion the economy, the April review added.

"Risks are tilted to the upside for inflation, fiscal and external deficits and to the downside for economic growth. However, while striving to sustain economic growth, policy is expected to safeguard medium-term fiscal and external stability," the review said.

The review also noted that passing on hi...