THE RELATIONSHIP BETWEEN INDIA AND THE INTERNATIONAL MONETARY FUND

 The IMF's primary duty is to lend money to nations that are having financial difficulties, especially those with balance of payment issues. 

189 countries contribute to it, and if they need money quickly, the money can be used to try to avert economic disaster. As of September 2016, the IMF had $668 billion in emergency lending capacity, which is roughly a quarter of the total UK economy. 

In exchange for the loans, the borrowing country must implement a set of policies and economic reforms designed to improve the efficiency of their economies. 

 

The origins of the IMF:


can be traced back to the days of international chaos in the 1930s. During World War II, plans were developed for the establishment of an international institution to establish monetary order.  

Delegates from 44 non-communist countries negotiated an agreement on the structure and operation of the international monetary system at the Bretton Woods Conference in July 1944.


The International Monetary Fund and India (IMF)


The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) were established at the Bretton Woods Conference of 44 nations in 1944. 

In July 1944, New Hampshire, USA. The IMF currently has 187 member countries India is a country.

 

The IMF's founding member Since then, India has not received any financial assistance from the IMF 1993All loans obtained from the International Monetary Fund have been repaid completed on May 31, 2000, The IMF's goals are macroeconomic growth and poverty alleviation.

 

Poverty and economic stability, policy advice and development financing, forum for monetary system cooperation, exchange rate stability promotion, and international cooperation system of payment the finance minister serves as the Board's ex-officio Governor.

 

When 47 tons of gold was discovered in the middle of the road

 

Many people are aware of India's foreign exchange crisis in the late 1980s and early 1990s, which resulted in the shameful act of the government pledging its gold reserves to avoid default on overseas payment obligations. 

Because the country's foreign exchange reserves had dwindled to the point where it could only finance about 15 days' worth of imports, a family jewel had to be pledged. During the debate over how the government and the Reserve Bank of India should handle it, there were many ups and downs.

 

Conclusion 


In FY'21, the government borrowed around $10 billion from multilateral organisations (IMF) to finance projects.


BY

Sk. Mastan Vali

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