ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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The Economy-Pleasing the IMF

part of the government, it is now known that India has knocked at the doors of the IMF for a large stand-by arrangement, reportedly in excess of $4 billion. As with the import of wheat and sugar, the decision to seek such a large loan from the IMF has been presented as an act of great foresight and sound economic management by the government. Inspired newspaper reports have sought to suggest that the large IMF loan will reduce the need to borrow in the international capital market where currently interest rates are so much higher. Attention has also been drawn to the government's saga- city in approaching the IMF for a large loan at a time when the country's external payments situation is still relatively satisfactory. Had the government waited till the onset of a foreign exchange crisis before seeking assistance from the IMF, its bargaining position would have been much worse than it is today, so runs the official apoligia.

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