“India’s post-independence development was both inward-looking and highly interventionist.” India was passing a rough phase in the year 1991. The country’s economy crashed down. This paper seeks to explore the economic crisis in India and the measures adopted by the Indian government to battle the same. The former portion of the paper will analyze the crisis and its cause. It will also focus on the impact of the reforms introduced by the Indian government to fight the crisis. Further, the latter portion of the paper will elucidate the concept of ‘conditionality’ concerning the IMF. It will examine the nature of these conditionalities and will attempt to critically analyze the purpose behind the conditionality imposed on the Indian economy in 1991.
