Indian economy will survive headwinds from a taper by US Fed, says FinMin

The Centre's fiscal deficit touched just 35 per cent of the Budget Estimates in the first six months of 2021-22

The Indian economy, unlike in 2013, is not vulnerable now to the US Federal Reserve's (Fed's) announcement of a taper in its loose monetary policy, even as oil and gold may bring down the country’s balance of payments (BoP) position, say finance ministry officials.

The Fed has announced the start of a drawback in its monthly purchase of bonds and securities, which it began in March last year to prevent the economic crisis on account of the pandemic from aggravating.

Officials scotched the possibilities of any harm the taper could do because the situation today was not like the one