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Question : Which organization provided financial assistance to India during the 1991 crisis?

 

Option 1: United Nations Development Programme (UNDP)

Option 2: International Monetary Fund (IMF)

Option 3: World Bank

Option 4: Asian Development Bank (ADB)


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Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: International Monetary Fund (IMF)


Solution : The correct answer is (b) International Monetary Fund (IMF)

In 1991, India entered into a loan agreement with the IMF, under which the IMF provided financial assistance to help stabilize the Indian economy and address its balance of payments issues. The loan agreement included conditions and policy reforms aimed at liberalizing and restructuring the Indian economy, such as reducing fiscal deficits, implementing market-oriented reforms, and promoting trade and investment liberalization.

The IMF's financial assistance and the associated policy reforms helped India navigate the economic crisis and set the stage for the liberalization and economic reforms that followed in subsequent years.

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