New Delhi, July 22 -- For the past few months, India's strong growth story had been overshadowed by a weakening rupee. That changed in June, when the currency snapped a three-month losing streak. Domestic equities also extended their rally, making financial markets one of the biggest contributors to India's widening lead in Mint's Emerging Markets Tracker (EMT).

India retained the top position in June with a score of 82.3, comfortably ahead of China (70.4) and Vietnam (70). While the top three rankings remained unchanged from May, India's lead widened as the rupee recovered, equity markets remained strong and core macroeconomic indicators stayed resilient.

The turnaround coincided with a series of developments.

The Reserve Bank of Indi...