NEW DELHI (Reuters) - The Indian economy is “well cushioned” to absorb the impact of U.S. Federal Reserve’s rate hike, the chief economic adviser at the ministry of finance Arvind Subramanian said on Thursday, amid fears of capital outflows from India.
India is seen as better equipped than its other emerging market peers to weather the impact of higher U.S. interest rates because of its stronger economic growth and record high foreign exchange reserves of more than $300 billion.
The Fed raised interest rates on Wednesday as central bankers across the globe are adapting to the incoming Trump administration’s promises of tax cuts, spending and deregulation.
(This version of the story has been refiled to fix word in third paragraph to adapting, instead of adopting)
Reporting by Rajesh Kumar Singh; Writing by Manoj Kumar; Editing by Malini Menon