India, March 6 -- Conflict in the Middle East poses some immediate-term challenges for the Indian economy but is unlikely to dent long-term economic growth momentum, an external member of the RBI's rate-setting panel has said.

Going forward, there is a need for fiscal and monetary policies to work in a coordinated manner to push GDP growth to a higher trajectory, Nagesh Kumar has said.In the present scenario, a hike in oil prices, exports disruptions and impact on remittances have been identified as the immediate challenges on the growth front, he said.

"The breakout of the Middle East conflict poses some immediate-term challenges for the Indian economy by raising oil prices, disrupting exports destined to the region and the potential l...