New Delhi: India's macro-economic prospects have improved and is best positioned among emerging market economies, gaining global investor's attention, says a report.
"After the taper tantrum scare in May-2013, the Indian economy has repositioned itself today as a winner in the EM space," said the ICICI Bank report.
Following the announcement by US Federal Reserve's quantitative easing taper in May 2013, India got exposed to macroeconomic vulnerability and joined the Fragile Five pack (India, Brazil, Indonesia, South Africa, Turkey).
However, the economy is now best positioned among the emerging market economies and has gained global investors' attention, the report said.
The other members of the erstwhile Fragile Five pack continue to hold a relatively weaker rank and hence remain vulnerable.
As per the emerging market macro vulnerability matrix India was ranked higher vis-a-vis other emerging markets while net commodity exporters are placed weaker.
India was followed by Hungary and Poland in the second and third place respectively. Others in the top ten include, Philippines in the fourth place, Korea (5th), China (6th), Turkey (7th), Thailand (8th), South Africa (9th) and Indonesia (10th) place.
The domestic firm said that the improvement in India's economic fundamentals have accelerated in FY2015 with the combined impact of a strong Government mandate, RBI's inflation focus supported by benign global commodity prices.
"India's macro-economic prospects have improved the most in comparison to other emerging markets and the country is best placed among other emerging markets," the report said.
The report further noted that net commodity exporters are likely to remain vulnerable on sharp correction in global commodity prices.
Consequently, the deterioration in trade for economies like Russia, Brazil, Indonesia, Argentina, Peru and Chile has caused them to slide to the bottom of rankings.