New Delhi, Oct. 16 -- The International Monetary Fund (IMF) recently brought out a paper on the evolution of local currency debt markets during periods of economic turbulence. The paper notes that in "risk-off" episodes, emerging markets were hit rather hard. This may not be the case now.

While experts are divided on whether the global economy is currently in a risk-off situation, one point on which they are unanimous is that the Indian economy can withstand economic shocks.

Emerging market economies have held up remarkably well in recent years, even after periods of global financial turbulence, says the IMF in its report 'Good Policies (and Good Luck) Helped Emerging Economies Better Resist Shocks' of October 06, 2025. While favourable...