During the financial crisis of 1991, India approached the International Monetary Fund and the World Bank for a loan. How much did India receive from them?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → $7 billion
In 1991 India’s foreign exchange reserves had fallen so low that they could pay for imports of only about two weeks. India approached the World Bank (IBRD) and the IMF and received $7 billion as a loan; in return it agreed to the reforms of liberalisation, privatisation and globalisation.