<b>I am not fully aware of the mechanism. However I have the impression that the Forex earned by the exporters are kept in the custody of the RBI through merchant Banks. The exporters can utilize forex for their own use, as specified by RBI from time to time. This leaves a gap of forex which is now on the plus side. Regarding, debt repayment, India is required to pay back as and when the installments become due. In some cases, depending upon the term on which it was drawn; repayment can be made before time also with out any penalty. India has been using this process to reduce its debt liabilities.
In June 2003, the Government of India decided to discontinue receiving aid from certain bilateral partners with smaller assistance packages so that their resources can be transferred to other developing countries in greater need of Official Development Assistance. In India, new aid in future, where accepted, would be directed towards NGOs working in specified areas. India will not accept any tied aid in future.
Now, India is a net creditor to the IMF/WB. Backed by robust forex reserves and a strong external position, India has been chosen by the International Monetary Fund (IMF) to join its Financial Transaction Plan (FTP), under which the country will contribute to the Fundâs liquidity that is used to help countries overcome balance of payment problems.
The IMF selects countries with strong BoP and foreign exchange reserves position for contributing to the FTP. These countries help the IMF finance the balance of payments needs of other countries. </b>
In June 2003, the Government of India decided to discontinue receiving aid from certain bilateral partners with smaller assistance packages so that their resources can be transferred to other developing countries in greater need of Official Development Assistance. In India, new aid in future, where accepted, would be directed towards NGOs working in specified areas. India will not accept any tied aid in future.
Now, India is a net creditor to the IMF/WB. Backed by robust forex reserves and a strong external position, India has been chosen by the International Monetary Fund (IMF) to join its Financial Transaction Plan (FTP), under which the country will contribute to the Fundâs liquidity that is used to help countries overcome balance of payment problems.
The IMF selects countries with strong BoP and foreign exchange reserves position for contributing to the FTP. These countries help the IMF finance the balance of payments needs of other countries. </b>