Second, as mentioned before, India has not directly contributed to the global imbalances and has built in enough stabilizers to keep it insulted from the consequences of global imbalances. Yet any disorderly unwinding of global imbalances is likely to have global ramifications and may affect the Indian economy indirectly.
The speed at which the US current account ultimately returns towards balance, the triggers that drive that adjustment, and the way in which the burden of adjustment is allocated across the rest of the world have enormous implications for the global exchange rates.