India expected to be resilient when Fed increases rates

Mumbai

TWO years ago India was a "fragile five" emerging economy growing at five per cent, grappling with a severe current account deficit, near double-digit inflation, and the rupee at record lows as the US Federal Reserve prepared to taper its stimulus programme.

Today, two years into the term of Reserve Bank of India governor Raghuram Rajan, the rupee has shrugged off its taper tantrum, inflation is tamed, and India has lifted foreign investment limits to confidently face the Fed's first rate rise since 2006.