Announcement of Seventy Five Million Dollars Credit to India for Industrial Imports on April 22, 1970

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 70/13 Subject: $75 million credit to India April 22, 1970 for industrial imports Selected industries in India will be able to maintain and expand their pro- duction of capital goods and agricultural chemicals with the assistance of a credit of $75 million from the International Development Association (IDA). The cr~dit will provide part of the industries' foreign exchange requirements for imports of materials, some components and spare parts. The following i.ndustrial sectors were selected because of their particu- larly high priority in India's economic development: commercial vehicles, agricultural tractors, automotive ancillaries, machine tools, cutting and • small tools and abrasives, electric motor~ and fertilizers and pesticides. The beneficiary firms employ about 160,000 people and will be producing over $1 billion worth of goods in_ 1970./71. The contribution of industry to India's gross domestic product reached 18% in 1968/69 compared to 13% in the early 1950 1 s and Indian industrial out- put now ranks tenth in the world. The potential for further industrial de- velopment is good. India's vast area and population provide a large market; it has large deposits of important basic minerals, and over the years has developed substantial managerial talent and industrial know-how, as well as a sizable skilled labor force. The credit will be extended to India for a term of 50 years, including 10 years of grace. It will be interest-free, but will carry a service charge • of 3/4 of 1% to cover IDA's administrative costs • - 0 -