India’s currency has climbed sharply against the US dollar since the beginning of September, and the appreciation will probably continue. Capital inflows are likely to stay strong as investors continue to distinguish between emerging markets which will be insulated from a weak global economic upswing, and those which are most vulnerable. Given its small dependence on exports and strong private sector balance sheets, India clearly comes out close to the top of any list of countries where GDP growth has a high chance of staying rapid in coming quarters.