Question

Q. New Economic Policy (NEP), 1991 was introduced after India agreed to conditionalities of which of the following institutions?

Select the correct answer using the codes given below:

• A.
  1 and 2 only
• B.
  2 and 3 only
• C.
  1 and 3 only
• D.
  All of the above

Answer 1

The correct option is C

1 and 3 only
Explanation:

The International Bank for Reconstruction and Development (IBRD), popularly known as the World Bank and the International Monetary Fund (IMF) was approached by India after the foreign exchange crisis and received $7 billion as loan to manage the crisis. But to provide these loans, a number of conditionalities were imposed, which formed the basis for the LPG (Liberalization, Privatization, Globalization) reforms in early 1990’s.