India and Indonesia Shed 'Fragile Five' Label as Reforms Attract Investor Inflows

India and Indonesia were once part of the "Fragile Five" but are now investor favorites due to reforms and fiscal restraint.

India's credit default swaps have dropped 85% from 2013, reflecting improved credit quality. Indonesia's CDS has fallen 70%.

Foreign investors poured $14 billion into Indian and Indonesian bonds in 2022, the highest since 2019.

India is overdue for a credit rating upgrade due to economic reforms under PM Modi, presenting opportunities.

Indonesia has stabilized finances, narrowing fiscal deficits, though elections and potential resignation of the Finance Minister bring uncertainty.