India better prepared now for US tapering: Finance Minister
DAVOS, Switzerland (REUTERS) - Developing economies will feel some impact from the United States Federal Reserve's winding down of its stimulus but India is better prepared than last year, Finance Minister Palaniappan Chidambaram said.
First signals from the Fed last May that it would begin to scale back - or "taper" - its extraordinary economic stimulus measures prompted many investors to pull funds out of emerging markets seen as risky, hitting asset values.
"We were concerned in May. But now I think we have done a lot of preparatory work," Mr Chidambaram told reporters on the sidelines of the Davos economic forum on Wednesday.
"There will be some consequences in developing and emerging economies but I think we are better prepared for the taper than when we were surprised in May."