India and Indonesia – not so fragile?

After coming through the latest bout of market turmoil with surprising resilience, it could be time for Indonesia and India to hand in their membership of the so-called ”Fragile Five”. Importantly, their increased stability looks to have been down to sharp falls in their current account deficits. We are cautiously optimistic that reduced reliance on foreign inflows will make both the rupiah and rupee less vulnerable to future sell-offs.