New Delhi, Oct. 28 -- Going by recent indicators, India's economy seems to be in good shape, with growth high and inflation low. But the global environment is volatile and should some disruptive shock arise externally, India's growth could be affected.

The finance ministry's economic report for September issued on Monday sees healthy domestic demand and low inflation, especially in the wake of above-normal rainfall and the cut in GST rates, acting as growth supporters. Also, it notes, household consumption and private investment are faring well.

This is noteworthy in the context of a prolonged slump in the latter and an uneven recovery in the former after the pandemic. Overall, the report's tone is optimistic, although sprinkled with a ...