With US interest rates heading upwards, how will India fare?

On Wednesday, the US Federal Reserve chose to keep the federal funds rate unchanged. But the forward guidance provided by the committee suggests that the Fed is on course to raise interest rates during the course of the year. The committee now projects the federal funds rate at 0.9 per cent by the end of 2016, perking up to 1.6 per cent by 2017.

With higher interest rates in the US all but a certainty, will it lead to an exodus of portfolio money from emerging markets, especially India? Will the rupee succumb under pressure as risk-averse investors pull