India's economy is likely to see downside risks to growth and upside risks to inflation, partly due to challenges in the country's external sector as well as weather-related uncertainties, the finance ministry said on Monday.

"Going forward, several factors, such as weaker-than-expected oil supply, higher-than-anticipated demand from China, intensification of geo-political tension and unfavourable weather conditions," may pose an upside risk for India's inflation forecasts, the ministry said in its monthly economic review. (Reporting by Siddhi Nayak; Editing by Sonia Cheema)