<h1>Policy frameworks for economic resilience: strengthened macroprudential and monetary tools support stable growth and external sustainability.</h1> Emerging markets have strengthened resilience by adopting flexible exchange rate regimes, moderating liability dollarisation, sequencing capital account liberalisation, building foreign exchange reserves, imposing credible fiscal rules, and reinforcing banking and financial sector oversight. India has implemented these reforms-diversified external receipts, low external debt, largely domestic and local currency public debt, and a flexible inflation targeting monetary framework-resulting in lower inflation volatility, improved policy credibility, and enhanced capacity to pursue structural reforms for sustained growth.