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, the Finance Ministry said in its latest Monthly Economic Review released on Friday.

"These external challenges could potentially impact India's growth trajectory and warrant close and continuous monitoring," added the May edition of the review.

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 se...