New Delhi, Dec. 31 -- India's economy continues to grow strongly on the back of robust domestic demand, despite persistent global challenges, according to the Financial Stability Report (FSR) of the Reserve Bank of India (RBI).

The Financial Stability Report (FSR) is a half yearly publication that includes contributions from all financial sector regulators. It presents the collective assessment of the Sub Committee of the Financial Stability and Development Council on current and emerging risks to the stability of the Indian financial system.

Benign inflation in India, fiscal consolidation, and prudent macroeconomic policies have enhanced economic resilience, the RBI report noted on Wednesday.

The domestic financial system remains soun...