12 Of course, other recent developments, such as the elevation of the G-20, including the main advanced and emerging market economies, as a major forum for international cooperation, are steps in the right direction. However, should existing shortcomings persist, the credibility and legitimacy of the major multilateral institutions, and thereby their relevance for international policy cooperation, are at risk of being further eroded.
1 With this degree of openness, developments in international markets are bound to affect the Indian economy and policy makers have to be vigilant in order to minimize the impact of adverse international developments on the domestic economy.