India, the World Bank, and the IMF

India, the World Bank, and the IMF

Length: 997 words (2.8 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Throughout the short history of an independent India, they have relied upon loans to grow their economy. Due to their prior colonization by Great Britain, they received most of their economy from Britain and there was no true need to receive loans. Since the independence of India from its mother- country, India has strongly relied upon the IMF and World Bank to grow its economy to the booming status that it has today.
Until the middle of the 20th century, British investment and trade that was introduced by the British fueled India’s economy. When India gained its full independence in 1947, India was left to find their own means to financial stability. For this, India would have to turn to the World Bank to receive loans to build much-needed infrastructure, create viable international companies and fuel their industry. According to the IMF, India has the second largest labor force in the world with 486.6 million laborers. In order to reach this height, India had no choice but to ask for and receive loans from the World Bank. Since its independence, India has received hundreds of billions of dollars in loans and credit. Currently, India has about 26 billion dollars in loans and around 40 billion dollars in credit. Many of this loan money and credit has gone towards the infrastructure of India in order to begin construction of an economic stronghold within cities. In recent years, the money has gone towards agriculture, steel/ iron, railways and power. Many of the citizens within India do not even have the luxury of electricity due to the vast ruralness of India. Without the loans and credit of the World Bank, India would not be at its current economic level.
There are a multitude of circumstances that have led to the economic surge within India, but the main factor is loans and foreign investment. With the help of the international community, India has grown to the 11th largest economy in the world and the 3rd largest in Asia. Not only has India grown to become of the leading economies in the world, but also it is also the fastest growing. Due to its recent economic success, India has been able to pay back many of its previous loans. Until around 2010, India saw its economy grow at a rate of about 7-7.5% a year, but since then has settled. In 2014, it is expected that “the economy is to to expand by 5.

How to Cite this Page

MLA Citation:
"India, the World Bank, and the IMF." 123HelpMe.com. 12 Dec 2019
    <https://www.123helpme.com/view.asp?id=288998>.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on The WTO IMF and World Bank

- The WTO IMF and World Bank The Uruguay Round in 1993was created to further reduce trade barriers. The result was the creation of the World Trading Organization (WTO). The main goal of the WTO is to police the international trading system. The data that the WTO has kept states that the volume of world trade has grown consistently faster than the volume of world output since the 1950’s. Two other types monitoring policies are the International Monetary Fund (IMF) and the World Bank. The IMF is an international institution set up to maintain order in the international monetary system....   [tags: Essays Papers]

Research Papers
750 words (2.1 pages)

Essay on India and Italy: Their History and Economy

- India and Italy have been part of the world since long time, both of the countries share unique features in them. India and Italy recently started having even stronger bonds with each other. Both the countries are part of ancient civilizations; people of India and Italy have continuous civilization since 2500 B.C.E. Both the countries can be compared and contrasted on the basics of their culture, religion, economy, history and trade stats etc. I have never seen Italy in my life but I hear people from Italy are similar to Indians in most of the ways and Italy itself attracts me as a beautiful country....   [tags: Economics Countries]

Research Papers
1280 words (3.7 pages)

Post World War II Economic Globalization Essay

- Post World War II economic globalization has had different effects on different developing states based on the specific countries policies for international institutions and liberalization of trade. As Milner states “All states involved are better off with these institutions that otherwise.” (2005, 537). The adoption of international institutions and liberalization of trade policies are a developing country’s response to attempt to break into the international playing field, and in turn lower the inequality and poverty rates in that developing state....   [tags: World Trade Organization, International trade]

Research Papers
1154 words (3.3 pages)

The United States And World War II Essay

- In 1941 the United States was attacked at Pearl Harbor by Japanese naval forces, triggering the US entry into World War 2, and global conflict, isolationism was no longer sustainable. During this conflict, the US was considered as the arsenal of democracy because it was the suppliers of weapons and materiel to all the nations fighting the Germans, Japanese and the Italians. It had the largest armed forces (air force, navy and army). Again because of the luck of geographical location, the US homeland was unscathed, while Europe and Japan were in rubbles....   [tags: Cold War, World War II, United States, Korean War]

Research Papers
730 words (2.1 pages)

Why The World Bank And Imf Created For Zimbabwe Essay

- Many Africa countries had borrowed loans from The World Bank and had agreements with the International Monetary Fund (IMF) as the conditions for receiving these loans. However, these conditional loans had led these poor African countries to a worse economic and societal condition, and created many problems for these nations. One example is the problems that the World Bank and IMF created for Zimbabwe. Zimbabwe had required a $484 million loan from the World Bank in the later 1980s, in order to get the loan, Zimbabwe had to take on government policies change, which including to accept the agreement to “cut its fiscal deficit, tax rate reductions, the deregulation of financial markets, to dis...   [tags: World Bank, Economics, Washington Consensus]

Research Papers
886 words (2.5 pages)

The International Monetary Fund ( Imf ) And The World Bank Essay

- Introduction It is 35 degrees Celsius on what is shaping out to be one of the hottest Summer days on record. Thirsty, you open the fridge to quench your thirst with a tall glass of filtered water. To your surprise, there is no water in the fridge. Feeling defeated, your older brother comes along holding a 2-litre jug of ice-cold water. Noticing how thirsty you are, your brother offers you 1-litre of his ice-cold water on the condition that you complete his chores for a week. You agree without hesitation, failing to consider the consequences of the deal you just entered because of your fragile state....   [tags: World Bank, International Monetary Fund]

Research Papers
1413 words (4 pages)

Essay on International Monetary Fund ( Imf ) / World Bank

- International Monetary Fund (IMF)/World Bank IMF is collectively called the International Financial Institutions (IFIs) and has three main activities which are surveillance, financial assistance and technical assistance. This a 187 member-countries organisation that was formed just after world war 2 in late July 1944 at Bretton Woods in Hampshire with the aim of stabilizing global economic markets (international currency market and contraction of international trade) and resuscitating economies of different countries that had been affected by world wide depression that was caused by world war 2....   [tags: Poverty, World Bank, International Monetary Fund]

Research Papers
923 words (2.6 pages)

The Positive Side Of Globalization Essay

- In the first place, I have to confess that what Joseph E. Stiglitz has been elaborating on in this video is fairly sobering. As far as I know, he is one of the globally-renowned recipients of the Nobel Memorial Prize in Economic Sciences, he holds steadfast views about globalization, at contemporary times, is becoming more and more against as well as defying its primary functions (As he put it in this stimulating and inspiring video, “Globalization does not live up to its promises.”), of promoting the ways of life both in developed countries and in developing countries including underprivileged regions and poorest areas, of unifying people of various countries, and of upholding the goodness...   [tags: World Bank, International Monetary Fund]

Research Papers
1636 words (4.7 pages)

Current Account Deficit Challenges India's Economy Essay

- The current account deficit is one of major challenges that Indian economy is facing. It has pulled down the economy growth to 4.8% from average growth of 5.5%. The current account records the trade of goods and services of an economy with other countries of the world. It consists of net exchange i.e. exports minus imports of goods, net exchange of services and net transfers to and from the country. Balance of the account before calculating the transfers is also called as balance of trade. X = Exports of goods and services M = Imports of goods and services I =Invisibles (net) NMG=Non-monetary movement of gold CAB = (X – M) + I+ NMT So now we can d...   [tags: import, export, balance]

Research Papers
1864 words (5.3 pages)

Essay on Failure of IMF and World Bank Policies in Sub-Saharan Africa

- Failure of IMF and World Bank Policies in Sub-Saharan Africa Over the last several hundred years, Africa has been deprived of the peace that it so desperately needs. For over 400 years, Africa was subjected to the harsh trans-Atlantic slave trade. Europeans and Americans brutally uprooted millions of Africans and shipped them away. Torn away from their homes, Africans were inhumanely exploited for their labor. The slave trade had a devastating effect not only on those involved, but also on future generations to come....   [tags: Africa World Bank Essays]

Research Papers
4503 words (12.9 pages)

3% this year, down from its earlier projection of 6.4%.” (BBC: Faster). After becoming the fastest growing economy, India has seen a settling which can be due to a couple factors. India in recent years is taking fewer loans from the World Bank and is attempting to become relatively independent of loans. With this data, the importance of the World Bank to the development of economies becomes noticeable.
The recent economic growth of India does not only benefit the country as a whole, but it also benefits the individual citizens. Before the countries economic success, India did not have the stability to allow many personal loans. Since the massive growth in their economy, their personal loan situation has become similar to any western country where the loans are essentially open to anyone, as long as they meet the criteria to receive loans. “In an effort to grow their lending book, many banks are now offering lower interest rate on personal loans.” (IndiaTimes: Banks). India has some of the lowest interest rates in the world and is encouraging people to get loans. Without the World Bank, India would not have the financial stability in place to allow such low loan rates.
Although India has received majority of its aid from the World Bank, India also relies upon Foreign Direct Investment; or FDI. The idea of FDI was not introduced in India until the early 1990’s. Since the introduction, it is believed that India has become one of the most valuable and important location to directly invest, only behind China. This FDI has allowed India to grow financially in a multitude of ways. The large scale of the FDI has ultimately led to large companies sprouting within India. Both the World Bank and FDI have led to the emergence of India’s economy.
With the oncoming of a powerful world economy, a countries social development and economic opportunity for the masses usually follows. With the ruralness of India, electricity is not something that many citizens are able to use. Recently, India has been attempting to get loans from the World Bank in order to fund the spread of electricity to ever corner of the country. The United Nations and India have been battling over this due to climate issues regarding Co2 emissions. Many rich countries with a much lower population than India tend to have a larger allotment of Co2 emissions. India is fighting to receive more carbon space to achieve this. The World Bank “has now backed the Indian stance that the high-income countries have contributed a disproportionate share of the world's carbon emissions and still continue to do so.” (IndiaTimes). Once India receives the green light to enlarge their carbon space, the World Bank is ready to distribute loan money to fund this project. This will ultimately lead to a better life for the citizens of India. Not only do they finally receive electricity, but also electricity will ultimately bring more technological advancements to the area.
Without the World Bank, it is unclear where India’s economic status would be today. India’s economy has been growing at unprecedented rates, and although they have slowed, will continue to grow at an unprecedented rate. If India continues to grow at the rate it does, it will surely surpass other countries to become a top 10 world economy. With the help of the World and foreign investment, India has been able to reach its economic prowess.






Works Cited
"At a Glance - India and the IMF." At a Glance - India and the IMF. N.p., n.d. Web. Apr. 2014.
"Banks Lower Rates on Personal Loans - The Times of India." The Times of India. N.p., n.d. Web. Apr. 2014.
"Financial Position in the Fund for India as of March 31, 2014." Financial Position in the Fund for India as of March 31, 2014. N.p., n.d. Web. Apr. 2014.
"IBRD Statement of Loans - Latest Available Snapshot | Data | World Bank Group Finances." Finanzas Del Grupo Del Banco Mundial. N.p., n.d. Web. Apr. 2014.
"India | Country Summary | World Bank Group Finances." Finanzas Del Grupo Del Banco Mundial. N.p., n.d. Web. Apr. 2014.
"India Economy Growth Rate Surprise." BBC News. N.p., n.d. Web. Apr. 2014.
Millay, Edna. "And You as Well Must Die." Flavorwire. N.p., n.d. Web. Apr. 2014.
Poe, Edgar. "Annabell Lee." Flavorwire. N.p., n.d. Web. Apr. 2014.
"Reserve Bank of India." Reserve Bank of India. N.p., n.d. Web. Apr. 2014.
Whitman, Walt. "The Wound-Dresser." Poets.org. Academy of American Poets, n.d. Web. Apr. 2014.
"World Bank Report Backs India's Stand - The Times of India." The Times of India. N.p., n.d. Web. Apr. 2014.

Return to 123HelpMe.com