What do you mean by the statement that “loan of seven billion dollar from World Bank and IMF by India was loan tied in?”
The statement means that the loan of seven billion dollar was tied up with the reform policies i.e. liberalisation, privatisation and globalisation. In other words, loan was given on the following terms and conditions :
1. India will adopt the policy of liberalisation and will open up the economy by removing restrictions on private sector.
2. It will remove restrictions on the private sector.
3. It will remove the role of the government in many areas.
4. It will remove trade restrictions between India and other countries.