The cessation of the conflict in West Asia has significantly improved India’s macroeconomic outlook by easing risks to growth, inflation and the external sector, finance ministry economists said on Tuesday. They, however, cautioned that deficient monsoon rainfall and rising climate-related uncertainties remain key challenges. In the monthly economic review for June, the ministry said the West Asia peace deal has reduced concerns over external stability after the prolonged conflict tested India’s economic resilience. “The cessation of the conflict in West Asia has brightened the growth outlook and also reduced inflation and external deficit risks,” it said.