Practicing Success
What were the expectations of the international agencies for availing the loan by India in the aftermath of economic crisis of 1991? |
Increase government control in many areas Boost exports and reduce imports Remove restrictions on the private sector and promote liberalization Both 2 and 3 |
Remove restrictions on the private sector and promote liberalization |
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. |