New Delhi, June 27 -- India's economy remains on firm footing, but persistent global headwinds, ranging from trade frictions and policy uncertainty to ongoing geopolitical tensions, could weigh on future growth, according to the finance ministry.

"These external challenges could potentially impact India's growth trajectory and warrant close and continuous monitoring," the ministry said in its May Monthly Economic Review released on Friday.

Despite these risks, the ministry maintained a largely optimistic tone. "Overall, the outlook for the Indian economy remains positive, demonstrating resilience amid a turbulent global environment, supported by robust domestic demand, easing inflationary pressures, a resilient external sector, and a st...