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BRICS+: 2QCY21: India vis-à-vis other emerging markets

2QCY21: India vis-à-vis other emerging markets (EMs)

* Although CY21 showed a promising start, new variants are leading to renewed COVID-19 waves. Still, equity markets continue to surge, bond markets broadly seem relaxed, and EM currencies have been stable against the USD in 2QCY21. Of our sample of 10 EMs, Brazil and Russia have done large rate hikes in CY21, while the South African Reserve Bank has reduced its Balance Sheet significantly.

* The fiscal deficit, however, remains high in most EMs. The base effect and reopening of the world economy has led to strong growth in merchandise exports across EMs, though the current account balance has worsened in a few nations in 1QCY21. Nevertheless, the massive rise in forex reserves and subdued imports implies that the external situation remains extremely comfortable in most EMs.

* This quarterly publication provides a comparative analysis of macroeconomic conditions in the world’s 10 major EMs. Quite often, these economies are clubbed together as a basket, especially in terms of portfolio allocation.

The 10 EMs included in this publication are:

* 1. Brazil (BR), 2. China (CN), 3. India (IN), 4. Indonesia (ID), 5. South Korea (KR), 6. Malaysia (MY), 7. Russia (RU), 8. South Africa (SA), 9. Taiwan (TW), 10. Thailand (TH).

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