Announcement of Indian Consortium on May 28, 1970

• INTERNATfONAL BANK FOR F~ECOf'\JSTRUC.:T·1or\J AND DEVELOPMEf'-JT' . 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 \Jf\) 101¥'1!/r May 28, 1970 Subject: Indian Consortium The following announcement was issued today at the World Bank's European Office in Paris: "The Consortium of Governments· and institutions interested in development assistance to India met in Paris on May 27 and 28, 1970 under the chairmanship of the World Bank. The meeting was attended by representatives of the Govern- ments of Austria, Belgium, Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Sweden, the United Kingdom and the United States. Norway, the International Monetary Fund and the Organization for Economic Cooperation and • Development sent observers. "The purpose of the meeting was to review the progress of economic development in India and to consider India's aid requirements for the fiscal year beginning April 1, 1970. "A delegation representing the Government of India, led by Dr. I. G. Patel, Secretary to the Government of India, Ministry of Finance, was present to describe recent economic developments and aid requirements. "The meeting commended the continued improvements in India's economic situa- tion in 1969/70. All Consortium members welcomed the continuation of the momentum in agricultural production with another record food grain harvest, the -further re- covery in industrial production, the maintenance of a reasonably stable price level and the substantial :effort made for further domestic resource mobilization in the • current year. Ex~ort performance with regard to engineering goods continued to be very encouraging, the increase in such exports being 30 per cent in 1969/70, after having doubled in the previous two years. T·1.,e importance of giving continuing /more  Bank Unnoo Press Release - Indian Consortium - May 28, 1970 • - 2 - attention to the growth of exports was stressed. ~. "Members reviewed the implementation of India I s Family Planning Program. They welcomed progress in making administrative policies and procedures, more responsive to the urgency of the program, and co11111ended the indication that plan allocation had been increased since the members discussed the pt·ogram in Stockholm in November 1969. "It was agreed that India needed substantial new colllilitments of non-project as well as project aid if the growth of the economy was to be sustained and ac- celerated. Members agreed that, for the year which began April 1, 1970, a level of new commitments of non-project assistance of about $700 million would be de- sirable. Toward this total of $700 million most members indicated the contribu- • tions they would be able to make, subject to necessary approvals, and others ex- pected to be able to do so later in the year. Within the total, members indicated actions which would result in more than $100 million in debt relief. With this, the target set of debt relief of $300 million over three years would be surpassed. "India's need for increased project assistance as an essential complement to non-~roject aid was also recognized, and Consortium members agreed that new commit- ments of about $400 million of project aid could be utilized effectively and that efforts would be made to meet this 2mount. "It was b.._;nerally agreed that further measures to improve the quality of aid were necessary ~nd members were asked to consider possible steps towards this, which might include the easing of restrictions on the use of aid, in particular procurement tying, further improvements in the terms of aid, and possibly further debt relief." - 0 - •