‘Learnt lessons from last taper tantrum’ – Times of India

NEW DELHI: Finance minister Nirmala Sitharaman on Wednesday stated that international locations, together with India, have learnt their classes from the earlier taper tantrum, whereas assuring that the federal government and the RBI had been holding shut tabs on state of affairs.
“Most international locations have learnt their classes from the 2008 disaster and primarily based on the teachings learnt many international locations have devised their very own methods… India too had learnt its classes from the final taper tantrum, which led India to changing into one of many Fragile 5 economies due to the way in which taper tantrum was dealt with final time. We’ve learnt some classes and along with the RBI we’re holding a watch,” Sitharaman stated in response to a query posed by Niti Aayog vice-chairman Rajiv Kumar at a convention organised by assume tank ICRIER.
With inflation selecting up tempo, there are fears that central banks in a number of developed economies will begin unwinding the liquidity, leading to withdrawal of funds from rising markets equivalent to India.
Apart from, there are worries over the Evergrande, which the FM sought to minimize, however appeared extra involved over the excessive ranges of debt.
“Particularly, not Evergrande, however debt sustainability is a matter which each international discussion board should handle and speak. Notably debt, that additionally brings sovereignty of a nation below risk, then it’s a matter of significant concern. There shall be this bigger subject of debt sustainability, sovereignty and the way smaller international locations are going through a really attempting difficult state of affairs,” she stated.

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