Under a 120 million United States dollar loan agreement to improve India railway network, with which international financial institution did the Government of India sign a deal to complete double tracking and electrification of railway lines along high density corridors?

Introduction / Context:
This question assesses your understanding of international financial institutions and their support for Indian infrastructure projects. Railways are a core part of Indian transport, and improvements such as double tracking and electrification often use external funding. Exams frequently test which agency funded a specific project or signed a particular loan agreement with India.

Given Data / Assumptions:
- The loan amount is about 120 million United States dollars.
- The purpose is double tracking and electrification of railway lines along high density corridors in India.
- The question asks which international institution signed this loan agreement with the Government of India.
- The options list various major global financial bodies.

Concept / Approach:
The Asian Development Bank (ADB) has a long history of supporting Indian infrastructure, including railway modernisation, power transmission, and urban projects. For railways, ADB has financed projects to improve efficiency, safety, and capacity. In contrast, the International Monetary Fund focuses more on macroeconomic stability, and African Development Bank works mainly with African countries. Therefore the pattern of past collaboration strongly points to ADB as the correct answer.

Step-by-Step Solution:
Step 1: Recall which agencies commonly fund Indian railway infrastructure. ADB and the World Bank often appear in such news. Step 2: Notice that the loan amount of 120 million United States dollars and the specific mention of double tracking and electrification match reported ADB support projects. Step 3: Compare roles: IMF gives balance of payments support, while ADB provides long term development loans for physical infrastructure. Step 4: Recognise that African Development Bank mainly finances projects in Africa, and the European Bank in European regions, making them less likely choices for Indian railway corridors. Step 5: Conclude that the correct partner in this loan agreement is the Asian Development Bank.

Verification / Alternative Check:
A quick elimination method also works. An institution focused on macroeconomic stabilisation rather than project level financing, such as the IMF, usually does not fund specific double tracking projects. Similarly, a bank with a regional mandate for Africa cannot be the main financer for Indian railways. News on India development cooperation regularly mentions ADB as a partner for rail, metro, and energy related investments, confirming the choice.

Why Other Options Are Wrong:
European Bank is a vague label in the options and does not match the typical name of a global development institution funding Indian rail projects.
African Development Bank concentrates on African countries and does not usually finance large Indian rail upgrading projects.
International Monetary Fund (IMF) supports countries through macroeconomic programmes and not dedicated double tracking and electrification lines of credit.
World Bank has funded Indian rail related projects but in this specific 120 million United States dollar agreement mentioned in the question, the primary partner is ADB, not the World Bank.

Common Pitfalls:
Many candidates confuse the roles of multilateral institutions. It is easy to pick IMF or World Bank simply because they are well known. To avoid this, remember that ADB often focuses on infrastructure in Asia, including transport corridors, urban services, and energy. Linking each institution to its region and typical project type makes these questions much more manageable.

Final Answer:
The correct answer is Asian Development Bank, which signed the 120 million United States dollar loan agreement with India to support double tracking and electrification of high density railway routes.