Chief Economic Adviser K V Subramanian

Our macroeconomic fundamentals are very very strong, said Chief Economic Advisor

India will not be impacted by the U.S. Federal Reserve’s move to tighten liquidity expected later this year, as India’s macro-economic fundamentals are strong, Chief Economic Adviser K V Subramanian said on Tuesday.

Asia’s third-largest economy has bad memories of past attempts by the Federal Reserve to get away from crisis-mode policies, particularly in 2013 when mere talk of “tapering” stimulus prompted the rupee to sink to record lows.

“Our macroeconomic fundamentals, whether it’s inflation, whether it’s a current account deficit, whether it’s our forex reserves, and all the others metrics clearly indicate that our macroeconomic fundamentals are very very strong,” Subramanian said.