Why financial architecture is essential for Indian infrastructure ?

In simple terms, financial architecture helps a nation to strengthen its financial system and ensure that its economy function well at the national level.

Primary objective of financial architecture is to detect and implement robust mechanism to combat vulnerability to external shocks, especially against a background of potentially large and rapid movements of international private capital.

According to IMF definition, architecture reform aims to help countries benefit from international capital flows, an important element of which is helping them open to such flows in ways that avoid risks and emphasize careful preparation.

The IMF's role in setting up financial architecture

International Monetary Fund of IMF assist its member countries to incorporate:-

(a) data, frameworks, and strategies that its members need to assess and manage their external vulnerability, in particular with regard to economic and financial data collection and dissemination

(b) Strategies to manage foreign exchange reserves and external debt.