In Terraform, what does the 'terraform init' command do?

The 'terraform init' command serves a fundamental role in preparing your working directory to manage Terraform configurations. When invoked, it initializes the working directory containing the Terraform configuration files by performing several essential tasks.

Firstly, it downloads the necessary provider plugins specified in the configuration. Providers are critical for enabling Terraform to interact with cloud platforms or other services. This ensures that the latest compatible versions of these plugins are available for use.

Additionally, 'terraform init' sets up the backend configuration, which specifies how Terraform should store and manage its state. This is important for teams working collaboratively, as it helps prevent conflicts and ensures consistency in the infrastructure state.

In conclusion, by executing 'terraform init', you establish the groundwork for further commands such as 'terraform plan' and 'terraform apply', which rely on a properly initialized environment to function correctly. This ensures that you have all the required dependencies and configurations in place before proceeding with infrastructure management.