New Delhi: India’s economy remained resilient despite an imminent global slowdown backed by strong domestic demand, the finance ministry said in its monthly economic report (MER). “On the demand side, private final consumption expenditure (PFCE) has emerged as the strongest driver of India’s growth so far in FY24. The festive season has further strengthened consumption demand,” according to the MER. Consumption growth was witnessed in the following terms: Rising passenger vehicle sales Jump in domestic air traffic Rising real estate prices Growing market capitalisation in equities UPI transactions Strong merchandise exports Also read: India ‘not out of woods yet’, warns RBI | Know why central bank thinks we have miles to go for stability India’s manufacturing and services sectors performed well during the year led by rising production and expansion in sales. Services activity received a fillip from favourable demand conditions as well as a strong entry of new businesses, according to the MER. Leisure and business travel has been a boon for the tourism and hotel industry in India, despite a rise in input costs. UPI transactions indicated a surhe on consumption with numbers crossing the 11 billion mark in October 2023. E-toll collections also indicated consumption activity. Centre may attain budget deficit target The finance ministry in the MER stated that the Centre may attain its budgeted deficit target backed by robust revenue inflows and prudent expenditure. The decline in global crude oil prices is expected to support the budget deficit target, according to the MER. Also read: S&P forecasts India to register strong growth despite global headwinds | What it means Risks persist “With more than half of the current financial year witnessing positive developments in the economy, the full financial year should conclude as projected with strong growth performance and macroeconomic stability,” said the finance ministry. However, it flagged the following risks to the economy: Inflation remains a point of risk owing to global geopolitical events Financial flows from external sectors will be closely watched The finance ministry flagged a risk from “priced to perfection” US stocks