Chapter 16 · Topic 16.2 · Prelims + Mains2 of 2
Current Economic Affairs: IMF, World Bank, WTO and indices
Key points
- IMF, World Bank, WTO and report publishers.
8 PYQs 2013–2022
Prelims box: facts and traps
| Report | Publisher |
|---|---|
| World Economic Outlook, Global Financial Stability Report | IMF |
| India Development Update, Global Economic Prospects, B-READY | World Bank |
| World Trade Report | WTO |
| Global Competitiveness Report | World Economic Forum |
| Human Development Report | UNDP |
| Monetary Policy Report, Financial Stability Report | RBI. |
- The World Bank’s India Development Update of October 2026 projects FY27 growth at 7.1%, up from 6.6% in April (projection), noting measured growth of 7.8% in the first quarter of FY27.
- UPSC Prelims 2014 asked which organisation brings out the publication known as Prelims 2014 ‘World Economic Outlook’: the International Monetary Fund.
- WTO: the 14th Ministerial Conference (MC14) met at Yaoundé, Cameroon, on 26–30 March 2026.
IMF, World Bank, WTO and indices
UPSC Prelims 2014 asked which organisation brings out the publication known as Prelims 2014 ‘World Economic Outlook’: the International Monetary Fund. The IMF’s October 2026 WEO projects India’s growth at 7.0% for FY27, up from 6.4% in July (projections).
Which of the following organizations brings out the publication known as ‘World Economic Outlook’?
- The International Monetary Fund
- The United Nations Development Programme
- The World Economic Forum
- The World Bank
Show answer
Answer: (a) · UPSC official key
The World Bank’s India Development Update of October 2026 projects FY27 growth at 7.1%, up from 6.6% in April (projection), noting measured growth of 7.8% in the first quarter of FY27.
WTO: the 14th Ministerial Conference (MC14) met at Yaoundé, Cameroon, on 26–30 March 2026. Decisions were adopted on fisheries subsidies, small economies and special and differential treatment in SPS and TBT, but there was no consensus on WTO reform or on extending the e-commerce customs-duty moratorium, which lapsed; 66 members agreed an interim plurilateral E-Commerce Agreement.
Indices: UPSC Prelims 2016 asked which organisation declared India’s ranking in the ‘Ease of Doing Business Index ’: the World Bank. The World Bank discontinued Doing Business in 2021 and replaced it with the Business Ready (B-READY) report.
India’s ranking in the ‘Ease of Doing Business Index’ is sometimes seen in the news. Which of the following has declared that ranking?
- Organization for Economic Cooperation and Development (OECD)
- World Economic Forum
- World Bank
- World Trade Organization (WTO)
Show answer
Answer: (c) · UPSC official key
| Report | Publisher |
|---|---|
| World Economic Outlook, Global Financial Stability Report | IMF |
| India Development Update, Global Economic Prospects, B-READY | World Bank |
| World Trade Report | WTO |
| Global Competitiveness Report | World Economic Forum |
| Human Development Report | UNDP |
| Monetary Policy Report, Financial Stability Report | RBI |
Mains box: analysis and answer points
- The IMF’s October 2026 WEO projects India’s growth at 7.0% for FY27, up from 6.4% in July (projections).
- Likely next angle: B-READY vs Doing Business
Practice
Prelims PYQs on this topic (8)
"Rapid Financing Instrument" and "Rapid Credit Facility" are related to the provisions of lending by which one of the following ?
Answer (b) & explanation
Both are IMF lending windows (b). The Rapid Financing Instrument (RFI) and the Rapid Credit Facility (RCF) are emergency windows of the International Monetary Fund for countries facing an urgent balance of payments need, such as after a natural disaster, a conflict or the COVID-19 shock. The RFI is open to all members. The RCF gives concessional (zero or low-interest) loans to low-income countries through the Poverty Reduction and Growth Trust. Neither needs a full IMF programme. The ADB (a), UNEP FI (c) and World Bank (d) do not run these facilities.
Notice the IMF's other tools: the Extended Fund Facility and Stand-By Arrangements, and Special Drawing Rights (SDRs). India took an IMF loan in 1991.
"Financing" and "Credit" sound like a development bank. Quick, short-term BoP help is the IMF's job.
Answer as per the official UPSC answer key.
With reference to 'WaterCredit', consider the following statements :
- 1. It puts microfinance tools to work in the water and sanitation sector.
- 2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank.
- 3. It aims to enable the poor people to meet their water needs without depending on subsidies.
Which of the statements given above are correct?
Answer (c) & explanation
Statements 1 and 3 are correct (c). WaterCredit was started by the non-profit Water.org, co-founded by Gary White and actor Matt Damon. Statement 1 is right: it puts microfinance tools to work, through partner lenders that give small loans to poor households for a tap connection or a toilet. Statement 3 is right: the idea is to help people meet water needs through credit they repay, not through subsidies. Statement 2 is wrong: it was not launched under the WHO or the World Bank.
Notice India's own water programmes: the Jal Jeevan Mission (2019), which aims at a tap connection for every rural home, and the Swachh Bharat Mission for toilets. SDG 6 covers clean water and sanitation.
Answer as per the official UPSC answer key.
"Gold Tranche" (Reserve Tranche) refers to
Answer (d) & explanation
The Gold Tranche is an IMF credit system for members (d). Each IMF member has a quota, which sets its contribution, its voting power and how much it can borrow. Part of the quota, originally 25%, is paid in gold or hard currency; this is the reserve tranche, once called the gold tranche. A member can draw it at any time, with no conditions and no interest, because it is really its own money. It is not a World Bank loan system (a), a central bank operation (b), or a WTO credit (c).
Notice that the reserve tranche counts as part of India's forex reserves, with gold, foreign currency assets and SDRs. India's IMF quota share is about 2.75%, and the 16th review aims at a quota increase.
the word "gold" points to a central bank vault. The tranche is a slice of the member's IMF quota.
Answer as per the official UPSC answer key.
The Global Competitiveness Report is published by the
Answer (c) & explanation
The World Economic Forum published it (c). The WEF, based in Geneva and known for its Davos meeting, brought out the Global Competitiveness Report, which ranked countries on 12 pillars such as institutions, infrastructure and innovation. It was paused after 2019 because of COVID. The WEF also publishes the Global Gender Gap Report and the Global Risks Report. The IMF (a) publishes the World Economic Outlook, UNCTAD (b) the World Investment Report, and the World Bank (d) the World Development Report and the now-discontinued Ease of Doing Business rankings, replaced by B-READY.
India ranked 68th in the 2019 report. Notice that India ranked 131st in the WEF's Gender Gap Report 2025, a frequent Prelims topic.
Answer as per the official UPSC answer key.
Which one of the following is not a sub-index of the World Bank's 'Ease of Doing Business Index'?
Answer (a) & explanation
Maintenance of law and order was not a sub-index (a). The World Bank's Doing Business report ranked countries on ten areas: starting a business, dealing with construction permits (d), getting electricity, registering property (c), getting credit, protecting minority investors, paying taxes (b), trading across borders, enforcing contracts and resolving insolvency. Law and order was never one of them, though "enforcing contracts" looked at courts.
India jumped from 142nd (2014) to 63rd (2020). Notice what happened next: the World Bank stopped the report in 2021 after data irregularities involving China and Saudi Arabia. It was replaced by Business Ready (B-READY), first published in October 2024. India also runs its own Business Reforms Action Plan (BRAP) ranking for states.
Answer as per the official UPSC answer key.
The Global Infrastructure Facility is a/an
Answer (b) & explanation
The Global Infrastructure Facility is a World Bank collaboration for infrastructure PPPs (b). It was launched in 2014, endorsed by the G20, and is hosted by the World Bank. It helps governments prepare and structure complex public-private partnerships so that private and institutional investors, such as pension funds and insurers, will put money into them. It is not an ASEAN or ADB initiative (a), it is not a group of banks working with the OECD (c), and UNCTAD does not fund it (d).
The basic problem it tackles is that there is plenty of money, but there are few "bankable" projects. Notice the Indian versions: the India Infrastructure Project Development Fund, the Viability Gap Funding scheme, and the NIIF.
Answer as per the official UPSC answer key.
Write an answer
In 150 words, explain the significance of Current Economic Affairs with one recent example.
Flashcards (4)
World Economic Outlook by?
IMF.
World Bank FY27 projection?
7.1%.
MC14 venue?
Yaoundé, Cameroon, March 2026.
Doing Business replaced by?
B-READY.
Read more: related explainers
- Economic Survey of India: Meaning, History, Who Prepares It, How It Differs from the Budget, Big Ideas from Past Surveys and How to Use It for UPSC
- Reserve Bank of India: History, Structure, Functions, Monetary Policy Committee, Surplus Transfer and the Autonomy Debate
- World Trade Organization: Origin, Principles, Key Agreements, Agriculture Boxes and India's Stakes
In the news
- 23 Oct 2026PLFS changes from January 2027: new stratum for platform workers and unpaid work questions
- 21 Oct 2026Core sector grows 7.9% in September 2026; iron ore, electricity and coal lead
- 20 Oct 2026Financial inclusion saturation campaign in 2.70 lakh panchayats and ULBs from 21 October
- 15 Oct 2026PLFS September 2026: unemployment steady at 5%; urban women’s participation highest since October 2025
Indian Economy →All Indian Economy topicsSyllabus: GS-III · Indian Economy and issues relating to planning, mobilization, of resources, grow…