New Delhi, June 15 -- NEW DELHI: The US-Iran peace agreement is expected to strengthen India's macroeconomic outlook by easing pressure on inflation, the current account deficit and government finances. The deal removes one of the biggest external risks facing the country as policymakers grappled with uncertainty arising from the conflict in West Asia.

With tensions easing, economists expect lower crude oil prices to reduce India's import bill, improve the current account position and ease pressure on the rupee. According to Pronab Sen, former chief statistician, the announcement is positive for India, but much will depend on the details of the agreement, particularly regarding the Strait of Hormuz.

"If the opening comes with conditions...