look at cash hordes of companies this is a point that a lot of people have been making in last two or three years they are sitting on large amounts of cash and are very safe financially they are not under stress and excess or normal liquidity is going to reflect somewhere like water any fluid liquidity finds its own level that is going to result in inflation or in inflated asset price will we see the synchronous global recovery being in some way threatened by a synchronous global tightening by central banks and can india afford to be part of that global tightening we are already seeing this and it is important now for central banks globally to sort of anticipate that as the us has started tightening the taper tantrum was a real live example of how disruptive things can be but also let us not forget that when the taper actually started the disruption was minimal so there is some understanding that is happening both in markets and in the policy making circles this can be managed or it can be disruptive the fed is very consistently communicating what it expects to do so that has become kind of now been built into the systems people anticipate this and it is a plausible scenario that this adjustment will take place without too much disruption asset prices may correct but they may not correct as disruptively as they did in the first taper tantrum of may 2013 that would be good for everybody if globally all the major central banks are on a tightening phase it becomes very difficult for a country like india to also not be in a tightening phase and that might constrain our degrees of freedom from the point of view of growth well partly it depends on what the interest rate linkage is we of course have liberalised capital inflows into our debt segments for the years starting perhaps 2011 that was the time when our current account deficit was very wide and we needed more funds that situation has changed there are limits which are at this point being exhausted in many categories we may not have that direct linkage now of course money will flow out from the debt segment but if this is a relatively small part of your total exposure it may not be that disruptive on the other hand if our growth is improving and we are starting to see returns to equity sustaining the currencies in a relatively stable way because you have relatively narrow current account deficit and large reserves that may induce the portfolio investors into equities to remain in position so that you could have a situation which is unlike in what was a key factor in 2013 current account deficit was close to 5 of gdp and that was big vulnerability now 25 is where we can be reasonably comfortable and that vulnerability is therefore much lower i would not be too concerned