Announcement of India Consortium Meeting on June 1, 1976

.World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE JUNE 1, 1976 INDIA CONSORTIUM MEETING The following announcement was issued on May 28 at the World Bank's European office in Paris. The Consortium of governments and institutions interested in de- velopment assistance to India met in Paris on May 27 and 28, 1976, under the chairmanship of the World Bank. The meeting was attended by repre- sentatives of the Governments of Austria, Belgium, Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Norway, Sweden, the United Kingdom and the United States. Also present were representatives of the International Monetary Fund and the United Nations Development Programme. The Government • of Switzerland and the Organization for Economic Cooperation and Development were represented as observers. 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 current economic situation in India and considered foreign aid requirements for the year which began on April 1, 1976, in the context of medium-term requirements of the Indian econorey. The members of the Consortium commended the Government of India for the measures taken to improve economic performance during 1975/76, when agricultural production had reached record levels. Power shortages had been largely overcome, export volume had increased by 8% in an environment of declining world trade, monetary stability had been maintained and the output of most public sector enterprises -- particularly coal, steel and fertilizers had improved significantly. These factors had contributed to a relatively comfort~ble foreign exchange position for the first time in many years, with reserves equal to a reasonable proportion of imports. Food grain stocks • too are adequate to help India manage through a year of poor weather . / ...  -2- The meeting stressed the need for the Government of India to take advantage of the present favorable situation and the good prospects for the economy to pursue policies leading to sustained long-term growth. • Of particular importance in this context are expansionary investment policies and appropriate adjustments in import policy. Participants in the meeting also expressed the hope that the Government of India would continue to strengthen its efforts in the priority areas of exports, agriculture and energy. The i~~0rtance of an effective family plann~ng program was also emphasized by members of the Group, as was the need to ensure that the weaker segments of the Indian population are actively involved in the de- velopment progress. The meeting noted that, if suitable policy measures are taken and maintained, India's medium- and long-term development prospects are very favorable. Members indicated the contribution they had already made or ex- pected to make in the present year toward the achievement of India's medium- term objectives. • - 0 - •