New Delhi: Consumption demand may “face headwinds” due to global pressures resulting from the West Asia crisis, amid a weakening rupee and sluggish investment, members of the parliamentary standing committee on finance, chaired by BJP MP BJP Bhartruhari Mahtab, were informed during a meeting with the Department of Economic Affairs (DEA) on Thursday (June 4).According to a report by Economic Times, a meeting was held with economic affairs secretary Anuradha Thakur and chief economic adviser V. Anantha Nageswaran in which they briefed the parliamentary panel on the state of the economy and evolving global and domestic trends.Members at the meeting included Congress MPs Pramod Tiwari, Gaurav Gogoi, Manish Tewari, BJP MPs P.P. Chaudhary, Dinesh Sharma, and Lok Janata Party (R) MP Arun Bharti, among others. In a statement, the DEA said that “some of the pressures emanating from the global environment are beginning to show early signs of transmission into domestic economic activity”.Speaking to the media after the meeting, Mahtab said the members discussed inflation, the West Asia conflict, China’s trade measures and currency volatility. He said that despite the global setbacks, India’s economy was emerging in a stronger position.“Issues such as rising prices, inflation, the conflict in West Asia, and China’s recent stringent laws aimed at protecting its industries were deliberated upon. While there are still certain headwinds, I would say that despite these serious challenges, India’s economy is emerging in a stronger position,” he said, as quoted by PTI.He also informed that the committee has decided to meet again in the third week of the month. Asked about the falling value of the rupee, Mahtab said it is “a matter of concern” and that the RBI is taking steps to control it.Private investments, too, Mahtab said, were a concern. “Government capital expenditure is increasing, but private investment has not picked up at the same pace. This is an issue that needs attention,” he said, per ET, suggesting that certain policy changes may be required.The DEA also warned of demand-side risks, noting that “with forecasts pointing to below normal monsoon and likely moderation in economic activity overall, consumption demand may face headwinds in the coming months, warranting close monitoring”.It noted that external buffers such as services exports and foreign exchange reserves may be able to provide cushion to face the external shocks in near term, although rising energy prices could widen the current account deficit. “The sharp increase in energy prices is expected to raise the import bill and exert pressure on the current account deficit… Developments in the external sector will require continued vigilance and careful macroeconomic management,” according to the economic advisors, as quoted by ET.The panel also discussed foreign capital outflows, which the DEA described as cyclical, driven by higher interest rates in advanced economies such as the US and Japan.Mahtab said that a major concern was that “when we are attracting FDI (foreign direct investment) in large numbers, there is also a flight of FDI from our country”, PTI reported.While it is cyclical in nature, he added, the greater challenge is that the US is attracting FDI in larger volumes. He concluded on the note that “India has a very good market and we will meet those challenges.”