Stabilisation and Structural Adjustment Reforms in India - An Analytical Approach

The major objective of this paper is to analyse analytically the application of Joint Fund Model (1985). This model tries to discuss the "Growth with Stability" with the help of Indian data for the period of 23 years (i.e., 1971-1993). Over the years IMF and the World Bank have stepped into each other's activities. India is a case country where the Joint-Fund-Bank model was applied in the name of stabilization and Structural Adjustment Lending (SAL) with the help of this programme, India checked the threat of default on her repayment liabilities in the crisis period.India achieved macro stability i.e., historic low inflation, current account surplus, economic growth rate around 9 to 10%. Debt/GDP ratio, DSR came at very low level, short term debt/total debt ratio came around 4 to 5%, foreign exchange rate became very competitive, foreign exchange reserve came to the level of imports more than 11 months. This means stability paved the way for further growth process in India. India serves as success story of the model