Announcement of a Meeting to Review the Indian Foreign Exchange Situation and Developments of the Indian Economy

B BACKGROUW) STATEMENT FOR rriESS ..5C) March 17, 1959 \.JtJ S'=t/1.a A meeting was held at the Bank's headquarters at Washington, D.C. on March 16 and 17, 1~59, followin._g the invitation and under the Chairmans~ip of the President of the World Bank, to review the Ind:lan foreign exchange situation and developments in the Indian econmny since the first meeting in A'l,lgust 1958. The Governments of Canada, Germany, Japan, the United Kingdom. and the United States were represented, and the International Monetary Fund sent observers. The participants considered an economic report .prepared by the staff of the World.Bank on the basis of infor~tion supplied.by the·Governnient:or India, and the International Monetary Fund's report of iti:r annual cnnsultations with India. ip. December 1958. They also • had before them the comments made on the Bank's report by Mr. B.K. Nehru, Commissioner Generalifor Economic Affairs, on behalf of the Indian Govern- ment, and the conclusions adopted by the Executive Board of the Inter- national Monetary Fund with respect to the 1958 consultations. It 1vas understood by the ·meeting that the Government of India would continue to pursue the economic and financial policies which had been discussed at the August meeting. The meeting took note of the improvement in the Indian situation since August, and in particular in the foreign exchange position. It would appear from the statements and assurances whicl~ have been made n.t the meeting that during the coming year India can reasonably expect to maintain the momentum of its development program, and.meet essential maintenance needs of' the economy, withoµt throwing undue strain upon its external reserves. <)