In 1991, India approached the _________ and ________ and received $7 billion as loan to manage the economic crisis.
Answer & explanation
Correct answer: option 3
India approached the International Bank for Reconstruction and Development (IBRD), popularly known as World Bank and the International Monetary Fund (IMF), and received $7 billion as a loan to manage the crisis. For availing the loan, these international agencies expected India to liberalize and open up the economy by removing restrictions on the private sector, reducing the role of the government in many areas, and removing trade restrictions between India and other countries.