In the wake of 1991 crisis, India had approached World Bank and the International Monetary Fund (IMF), and received $7 billion to manage the crisis. This amount was received as?
Answer & explanation
Correct answer: option 1
The correct answer is option 1: loan
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 loan to manage the crisis. For availing the loan, these international agencies expected India to liberalise and open up the economy by removing restrictions on the private sector, reduce the role of the government in many areas and remove trade restrictions between India and other countries.