Which institution played a key role in influencing structural reforms of the industrial sector in India post-1991?

Correct option is C

The correct answer is (c) IMF and World Bank
Explanation:
· After the 1991 Balance of Payments (BoP) crisis, India sought financial assistance from the IMF and World Bank.
· These institutions recommended structural reforms known as the Liberalisation, Privatisation & Globalisation (LPG) reforms.
· The New Industrial Policy of 1991 was heavily based on their recommendations.
· Reforms included:
· Ending License Raj
· Permitting higher FDI in industries
· Reducing import tariffs
· Deregulating industrial sectors
· Encouraging private-sector participation
· These reforms transformed India from a closed, controlled economy to a market-oriented, globally integrated economy.
Information Booster:
· IMF helped India stabilize foreign exchange reserves and restore economic balance.
· World Bank provided Structural Adjustment Loans (SALs) for long-term reforms.
· WTO (established 1995) was not involved in 1991 reforms.
· Pre-1991 Indian industry suffered from excessive licensing, slow growth, and low competitiveness.
Additional Knowledge:
(a) NABARD – Deals with rural development, not industrial reforms. (b) WTO – Not formed until 1995; had no role in 1991 reforms. (d) RBI – Manages monetary policy, not structural industrial reforms.