Announcement of Meeting of the India Consortium on June 15, 1973

• • • I • ' • -- -- ---~-;- INTERNATIONAL BANK FOR .RECONSTRUCTION AND D~VELOPMENT 1818 H STREET, N.W., WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVE 3-6360 June 15, 1973 Subject: Meeting of the India C,onsortium The following announcement was issued today at the World Bank's European Office in Paris: "The consortium of governments and institutions interested i~ development assistance to India met in Paris on June 14 and 15, 1973, unde:r the chairman- ship of the World Bank. The meeting was attended by representatives of the governments of Austria, Belgium, Canada, Denmark, France, Gemany, Italy, Japan, the Netherlands, Norway, Sweden, the United l.{ingdom and the United States. Also present were representatives of the International Monetary Fund, the United Nations Development Programme and the Organisation for Economic Co-operation and Development. "The Government of India was represented by a delegation led by • Mr. M.G. Kaul, Secretary to the Government of India, Department of Economic Affairs' Ministry of Finance. "The meeting reviewed the progress of econanic development in India and considered development prospects and foreign aid requirements for the fiscal year beginning April 1, 1973, which is the final year of India's Fourth FivE~- Year Plan. "The meeting considered the performance of the econa:ny in fiscal year 1972/73. Agricultural produ::tion had been severely affected by the failure ,,£ last year's monsoons. The impact of the drought on the economy and, especially, on the balance of payments was a matter of serious concern to the meeting. J~ut as in the previous year, ~..xport growth had again been encouraging. The meet:lng commended the overall performance of the econany in these difficult circwnst,ances. It also noted the accelerated industrial growth and expressed·the hope that 1neasures by the Governmentto improve the investment climate through such steps as more flex- ible licensing policies would provide for sustained rapid industrial growth. "The meeting agreed that substantial new colllD.itments of aid were required in the current year so that imports could be kept at a level adequate to support im- • proved economic growth. Members agreed that, for the year which began April 1, 1973, commitments of non-project assistance, including debt relief, of about $700 million and of project assistance of about $500 million would be desirable. /more India Consortium - 2 - ''Most members indicated the contribution they had already or would be able to make, subject to necessary approval, toward these aid goals, including debt relief. Others expected to be able to do • so later in the year and gave their support to the overall program." ... - 0 - \ • •