Macro-economic overview
Did you know?
It was India, way back in 1952, who proposed the Comprehensive (nuclear) Test Ban Treaty to the United Nations?
Did you know?
India's middle class is bigger than the population of the United States.
The 'nuclear' effect
Following the testing of nuclear devices by India in the second
week of May 1998, some industrialized countries reacted negatively in the field of
economic relations. The United States and Japan were the major economies which
imposed sanctions on India. This, it was initially thought, could affect India's dealings
with the World Bank (the IMF didn't matter at the time because there was no IMF programme
for India).
As if to beat the effect of the sanctions, India floated an overwhelmingly successful bond issue (called the Resurgent India Bonds) which netted in US$4 billion from Indians living overseas.
Looking back, the sanctions made no difference to India. On the contrary, the national Exchequer got a bonanza of US$4 billion from the bond issue (which was expected to get only US$2 billion).
Business always remained, and remains, as usual with all countries
of the world.