It May Look Like ‘Taper Tantrum,’ But India Is in Better Shape
- Budget deficits and inflation credentials have helped
- Higher oil prices poses risk to current-account and trade gap
A vendor hands Indian rupee banknotes to a customer at a stall in Chauta Bazaar in Surat, Gujarat, India.
Photographer: Karen Dias/BloombergThis article is for subscribers only.
A sense of deja vu has enveloped India.
A sharp slide in the rupee, rising oil prices and a widening current-account deficit due to slowing capital inflows are throwbacks to the dark days of 2013, when the country bore much of the brunt of the "taper tantrum." Yet the situation today isn’t nearly as grim, and India finds itself lower down on the list of risky economies, well behind countries like Argentina and Turkey.