India not to be impacted by U.S. Fed's likely liquidity taper: government official

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A customer hands a 50-Indian rupee note to an attendant at a fuel station in Ahmedabad

NEW DELHI (Reuters) - India will not be impacted by the U.S. Federal Reserve's move to tighten liquidity expected later this year, as India's macro-economic fundamentals are strong, Chief Economic Adviser K V Subramanian said on Tuesday.

Asia's third-largest economy has bad memories of past attempts by the Federal Reserve to get away from crisis-mode policies, particularly in 2013 when mere talk of "tapering" stimulus prompted the rupee to sink to record lows.

"Our macroeconomic fundamentals, whether it's inflation, whether it's a current account deficit, whether it's our forex reserves, and all the others metrics clearly indicate that our macroeconomic fundamentals are very very strong," Subramanian said.

(Reporting by Aftab Ahmed; Editing by Peter Graff)

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