Announcement of Meeting of India Consortium on June 30, 1975

.Jr," • . e iftr- l J .,. eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 Bank News Release June 30 , 19 7 5 MEETING OF INDIA CONSORTIUM The·Consortium of governments and institutions interested in develop- ment assistance to India met in Paris June 26 and 27, 1975, under the Chairman- ship of the World Bank. The meeting was attended by representatives of the governments of Austria, Belg:f.um, Canada, Denmark, Fr.ance, Germany, Italy, Jaoan, the Netherlands, Norway, Sweden, the United Kingdom and the United States. Also present were representatives of the International ~fonetary Fund and the United Nations Development Programme. The Government of Switzerla:-:d the Organisation for Economic Co-operation and Development were represented as observers. The Government of India was represented by a delegation led by Hr. M.G. Kaul, Secretary of the Government of India, Department of Economic Affairs, Ministry of Finance • • The meeting reviewed the current economic situation in India and considered foreign aid requirements for the fiscal year which began on April 1 , 19 75 • The members of the Consortium commended the Government of India for the effectiveness with which it had handled the difficult economic situation of 19 74/75, particularly in bringing inflation under control, and it noted that the Government's efforts in this connection were assisted by a substantial inflow of external resources. The adjustment to the problems of last year meant, however, that development in the Indian economy was undesirably circumscribed during this period. The meeting noted that India's economic situation at the start of 1975/76 was more favorable than it was at the beginning of last year, with the expectation of a better harvest, with an improved power situation, with increased availability of critical material supplies and with much less inflation. However, the members stressed the need for continuing vigilance in the monetary and fiscal areas. :t'fore- over, they expressed the strong hope that the Government of India would continue to strengthen its efforts, particularly in the priority areas of export stimulation, agriculture and energy production, and would increasingly concentrate administra- ti.ve effort on objectives of highest priority to economic development. The importance of India's on-going family planning program was also stressed by members of the Group. They further emphasized their view that the poorer sections of Indian society should be enabled to participate more actively in the deve1opment process and should receive a greater share of its benefits. They expressed the • hope that with increasing attention to the matters mentioned above, India would this year resume real economic growth. They noted India's considerable long-term potential, both physical and human, and considered that, if this potential was effectively directed and focused, India's long-term prospects were encouraging. /more  - 2 - Members agreed that in the existing circumstances and particularly in the expectation that the current year would see a speeding up of develop- ment in India, inflows of aid were needed in the current year in excess of those achieved in 1974/75. They also felt that new aid commitments should to the greatest extent possible be in fast disbursing and readily usable • form, including a~bt relief and that a further soften:lng of the terms of aid would be of great value to India. Members indicated the contributions in the present year towards achievement of these objectives, which they had made or expected to make in the course of the year. - 0 - • •