Question
Role of multilateral institutions (IMF, World Bank, WTO) in India's foreign economic policy
Answer :
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Multilateral institutions such as the International Monetary Fund (IMF), World Bank, and World Trade Organization (WTO) have played a significant role in shaping India’s foreign economic policy. The IMF provides financial support and policy advice to maintain macroeconomic stability. India has engaged with the IMF for policy guidance on fiscal management, exchange rate stability, and economic reforms. During economic crises, such as the balance of payments crisis in 1991, IMF support and conditionality helped India implement structural adjustments, opening its economy to global markets and attracting foreign investment. The World
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