"There has to be a much greater clarity and much greater cooperation between the Fed and other emerging markets to ensure that tapering is done in a systematic manner so as not to destabilise whatever little stability has been achieved in the global economy," India's Economic Affairs Secretary Arvind Mayaram said.
He said there should be some kind of guidance from the US authorities to make tapering more predictable.
"There must be a certain understanding as to how to go forward and what is the manner in which you will calibrate the withdrawal of the stimulus," said the Secretary, who is here to participate in the G20 Deputies meeting.
The Fed has reduced its monthly bond purchases by $20 billion to $65 billion on signs of an improving US economy.
The reduction in stimulus, known as tapering, may affect capital flows to emerging markets and impact their currencies.
The Fed first talked about tapering in May 2013, sending markets the world over into turmoil and the rupee to a record low. However, the reduction started in January.
"There must be some benchmark...Should it be $10 billion every quarter or $20 billion...Without destabilising the economy.
"Nobody knows how they are going forward. We want that to be a little more calibrated and one that takes others into confidence. Central bankers should be informed as they look into monetary policies. There has to be guidance," Mayaram said.
The Indian government has assured investors the country is better prepared to deal with any impact of tapering.
According to the minutes of the US Federal Open Market Committee meeting in January, several participants said there should be "a clear presumption in favour of continuing to reduce the pace of purchases by a total of $10 billion at each FOMC meeting."