The impact of international affairs on India’s economic policies is significant. Here are the main points to consider:

• Trade agreements – India’s trade policy is heavily influenced by international treaties and agreements. The country’s foreign trade policy aims to boost exports and attract foreign investment.
• Foreign direct investment – Diplomatic relations influence the flow of foreign direct investment (FDI) into India. Good diplomatic ties with developed nations can help attract more investments and improve the economy.
• Monetary policy – Exchange rate stability is important for India’s economy. International affairs, such as geopolitical tensions and currency fluctuations, can impact exchange rates and monetary policy decisions in the country.
• Oil prices – India is highly dependent on oil imports. Therefore, international affairs, including OPEC decisions and political tensions in oil-producing nations, have a significant impact on India’s economic policies and fiscal budget.
• Global financial crisis – India’s economic policies were heavily influenced by the global financial crisis in 2008. The country increased public expend on infrastructure projects to stimulate the economy.

Overall, international affairs play a crucial role in shaping India’s economic policies. From trade agreements to monetary policy decisions, India’s economy is intertwined with the global economy.