US-Iran thaw to provide tailwinds for growth: RBI
GST
Dated:- 30-6-2026
PTI
Mumbai, Jun 30 (PTI) The Reserve Bank on Tuesday said the interim peace deal between Iran and the US can provide tailwinds to Indian economic growth.
In its bi-annual financial stability report released on Tuesday, the central bank also said that the growth in gold imports has decelerated “substantially” in May 2026 over April.
It, however, flagged that fiscal deficit can come under pressure because of the higher prices of energy and other commodities, their limited pass through to pump prices, excise duty cuts and higher outgo on subsidies.
“'… the interim peace deal has laid the foundation for cessation of this conflict and normalisation of
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the Government, including support to MSME and export sectors, are expected to help sustain economic activity, while mitigating the impact of external shocks, the central bank said.
On the inflation front, it said a combination of conflict-driven supply shock and projected weak monsoon due to El Niño can push headline inflation to the higher end of the tolerance band or around 6 per cent in Q3FY27 and also worsen inflation expectations.
The recent decline in net FDI (foreign direct investment) may reflect the tightening of global financial conditions, it said, adding that foreign portfolio flows to India have also been under pressure.
Asserting that India's external sector remains “resilient”, the FSR said, “The recent measures
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