What is ‘Fragile Five’ that PM Modi mentioned in his I-Day speech and why was India part of it?
The ‘Fragile Five’ referred to economies that were considered heavily dependent on foreign investment and vulnerable to sudden shifts in global capital flows.
In his Independence Day speech from the Red Fort, Prime Minister Narendra Modi announced that India had moved out of the "Fragile Five" group of economies. The term "Fragile Five" was coined by the global investment bank Morgan Stanley in 2013 to refer to five emerging economies that were considered particularly vulnerable to external financial shocks.
These countries included India, Brazil, Indonesia, South Africa, and Turkey. The label was given due to high inflation, a widening current account deficit, a weakening rupee, and significant dependence on foreign capital in these nations. However, India's external balances improved and foreign exchange reserves strengthened, allowing the country to move out of the "Fragile Five" grouping in 2014.
This transformation has been attributed to the efforts of India's people, with the Prime Minister highlighting significant growth over the past 12 years.
Written by urgent.news from Hindustan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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