Part 7/9:
India's economic woes are not isolated; the struggles of this emerging economy are having ripple effects that extend to its neighbors and other emerging markets throughout Asia. As India's stock market has found itself in a downward spiral, a noticeable trend of foreign capital withdrawal ensues—an alarming $21 billion has left Indian equities since September, with fewer investors willing to take the plunge amid rising global uncertainty.
Emerging Asian markets, once buoyed by India's growth prospects, are now grappling with their liquidity challenges and investor apprehension. The regional predicament demonstrates a growing trend reflecting broader global fears of stagnation, especially with the looming strength of the US dollar and its impact on local currencies.