India’s IMF Programmes—1966 and 1981: An Analytical Review

India was one of the most closed economies in the world during the period of 1947–1991. India’s fiscal deficits were high, and foreign exchange reserves were precipitously low and the exports were non-competitive. On three occasions, India had to avail external assistance from the International Monetary Fund (IMF) to overcome the balance of payments (BOP) crisis. India negotiated IMF programmes in 1966, 1981 and 1991. This article examines the events of 1966 and 1981. While India sought significant IMF assistance, gradualism reigned in the reforms programme. This article appraises the macro-economic conditions of 1966 and 1981 programmes, the choices that governments of the day faced and the reasons for the decisions taken