New Delhi, July 1 -- The Indian economy continues to expand at a robust pace, reinforcing its role as a key contributor to global growth, according to the Reserve Bank of India's latest Financial Stability Report (FSR) released on Monday.

The central bank attributed this resilience to sound macroeconomic fundamentals and prudent policy interventions, even as global economic and financial conditions remain volatile.

"Despite an uncertain and challenging global economic backdrop, the Indian economy remains a key driver of global growth," the RBI said in its biannual assessment.

However, it flagged elevated global economic and trade policy uncertainties, warning that they are testing the resilience of financial systems worldwide.

Volatil...