What were the conditions that I.B.R.D. had put on India for giving them loan worth 7 billion dollar at the time of economic crisis, in year 1991?

Remove trade restrictions between India and other countries

The correct answer is option 3: Remove trade restrictions between India and other countries

Many economists argue that the initial policy framed after independence, which were aimed at controlling and regulating the economy, ended up instead in hampering the process of growth and development. Thus, the I.B.R.D. had put a condition of liberalising the economy, reducing the role of government and removing the trade barriers internationally.

Option 1: Liberalise and close the economy- Incorrect.Correct option should be "Liberalise and open up economy".

Option 2: Remove restrictions on private sector and increase the role of government. Incorrect.Correct option should be "Remove restrictions on private sector and reduce the role of government".