The Fed comments on May 22 were the immediate trigger which brought these factors to centre stage. 21. India, as one of the major absorbers of foreign capital has been vulnerable to these global trends.
But, it was not only India’s problem – many EMs were hit, albeit to different degrees with domestic macroeconomic conditions, especially the current account deficit, to some extent moderating or accentuating the headwinds from the tapering announcement. Structural factors 22.