In May 1991, following Prime Minister Rajiv Gandhi’s assassination, the World Bank and International Monetary Fund issued a joint statement expressing their continued commitment to assisting India in its economic development. The statement recognized India’s efforts at “preparing a program of corrective policies aimed at strengthening their economy.”

The statement further noted, “We will continue to work to that end and thus to provide the basis for support by the Fund, the Bank and all the other members of the India Consortium, which remains strongly committed to India’s economic development.”

This statement came at a crucial time, as India was grappling with serious macroeconomic imbalances including a severe balance-of-payments crisis. It signaled the willingness of international institutions to support India, despite the political turmoil and economic difficulties it was facing.

The statement served as a critical vote of confidence, assisting India in its path toward economic liberalization.