Announcement of India Consortium on November 14, 1967

FOR IMMEDIATE RELEASE 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 November 14, 1967 Subject: India Consortium The following press announcement was issued November 14, 1967 at the World Bank's European Office, Paris: "The Consortium of governments and institutions interested in development assistance to India met iri Paris on November 13 and 14, 1967, under the Chair- manship of the World Bank. The meeting was attended by represe-;:1tatives of the Governments of Austria, Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, the United Kingdom and the Unit~d States., The International Honetary Fund sent observers. • A delegation representing the Government of India, led by Mr. P. Govindan 11 Nair, Secretary in the Ministry of Finance, and also including Mr. K. B. Lall, Secretary in the Ministry of Co111merce, and Mr. B. Sivar.s.man, Secretary in the Ministry of Food and Agriculture, was present during the meeting in order to describe recent economic developments in India. "Members particularly welcomed the delegation's report of progress in the modernization of agricultural production and their forecast of a good harvest, with foodgrain production during the current agricultural year estimated to reach a record trJtal of 95 million metric tons. Members also welcomed the important emphasis being given to programs of export promotion and family plan- ning and indications that those programs would be further intensified during the next year. "Members of the Consortium commended the Government of India for the broad • and sustained effort it had made together with its Consortium partners to avert  - 2 - •• widespread disaster in the face of the successive droughts of 1965 and 1966. It was observed that, after two years of drought, the Indian economy had been passing through a recessionary phase, but prospects for economic recovery in the coming twelve months were good. It was also noted that renewed growth in the economy was expected to lead to an increase in import requirements, resulting in a more rapid use of aid. "For the year 1967/68, Consortium members have already committed, or are now negotiating agreements to provide, aid .for project, food and non-project purposes; further commitments would be negotiated as soon as legislative appropriation pro- cedures are completed in certain member countries.· An increasing portion of Consortium aid has recently been in a form which is freely usable including some in the form of debt relief, and a large part of this year's total is in the form • of foodstuffs or their equivalent, such as supplies of fertilizers and other agricultural inputs. "The group also reviewed, in a preliminary way, the probable over~all require- ments for new non-project and project assistance during the next Indian fiscal year, beginning April 1, 1968. On the basis of an analysis prepared by the World Bank, members concluded that non-project requJrements would continue at a rela- tively high level and that there would be a need for larger compiitments of project aid than in the recent past,." •