India, July 1 -- 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 supply chains, which could provide tailwinds to growth," the report said.

The country entered the...