{"id":220883,"date":"2023-01-03T18:40:00","date_gmt":"2023-01-03T13:10:00","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=220883"},"modified":"2023-01-04T16:26:44","modified_gmt":"2023-01-04T10:56:44","slug":"the-new-year-looks-decidedly-gloomy-in-indias-political-neighbourhood","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-new-year-looks-decidedly-gloomy-in-indias-political-neighbourhood\/","title":{"rendered":"The New Year looks decidedly gloomy in India&#8217;s political neighbourhood"},"content":{"rendered":"\n<p><strong>Source<\/strong>: The post is based on the article\u00a0<strong>\u201cThe New Year looks decidedly gloomy in India&#8217;s political neighbourhood\u201d<\/strong>\u00a0published in\u00a0the\u00a0<b>Business Standard <\/b>on\u00a0<strong>3rd January 2023<\/strong>.<\/p>\n<p><strong>Syllabus<\/strong>: GS 2 \u2013 India and its neighbourhood- relations.<\/p>\n<p><strong>Relevance<\/strong>: About challenges in India&#8217;s political neighbourhood.<\/p>\n<p><strong>News<\/strong>: Three key Indian neighbourhood countries with which India has economic ties \u2014 Sri Lanka, Bangladesh and Nepal \u2014 are facing risks that appear to be worsening.<\/p>\n<h5>What are the risks associated with India&#8217;s political neighbourhood?<\/h5>\n<p><strong>Sri Lanka<\/strong>: Its economic crisis needs International Monetary Fund (IMF) loans &#8211; a combination of the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).<\/p>\n<p>But for that, Sri Lanka will have to reach a deal with its bilateral creditors, principally, India, Japan and China that the terms of their loans do not work at cross purposes with the IMF loan.<\/p>\n<p><strong>Bangladesh<\/strong>: It also having economic trouble. The collapse of global trade, on which the economy is acutely dependent, and high oil prices have hit the economy hard. There is a \u201csharp widening of the current account deficit, the rapid decline of foreign exchange reserves, rising inflation and slowing growth\u201d in Bangladesh.<\/p>\n<p>Due to these, the country has just signed a 42-month arrangement to secure a $3.2-billion IMF loan under ECF and EFF, with another $1.3 billion under the climate-linked Resilience and Sustainability Facility (RSF).<\/p>\n<p><strong>Nepal<\/strong>: The general elections had led to no clear verdict. Recently, the country finally got a new government in place with a left-wing orientation. The previous government&#8217;s repair work was made necessary by the IMF loan. The current inflation rate of 8.08%.<\/p>\n<p><strong>Pakistan<\/strong>: Standard &amp; Poor recently reduced the sovereign rating to CCC-plus. This puts it deep in junk grade.<\/p>\n<p>The supply shock-led crisis in South Asia highlights the policy missteps of different governments. The growth of South Asia now depends on how the countries implement the IMF support programmes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on the article\u00a0\u201cThe New Year looks decidedly gloomy in India&#8217;s political neighbourhood\u201d\u00a0published in\u00a0the\u00a0Business Standard on\u00a03rd January 2023. Syllabus: GS 2 \u2013 India and its neighbourhood- relations. Relevance: About challenges in India&#8217;s political neighbourhood. News: Three key Indian neighbourhood countries with which India has economic ties \u2014 Sri Lanka, Bangladesh and&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/the-new-year-looks-decidedly-gloomy-in-indias-political-neighbourhood\/\">Continue reading <span class=\"screen-reader-text\">The New Year looks decidedly gloomy in India&#8217;s political neighbourhood<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,212],"class_list":["post-220883","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-2","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704943166},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/220883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=220883"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/220883\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=220883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=220883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=220883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}