Announcement of India Consortium Meeting on July 6, 1977

FOR. ·1MMEDIATE RELEASE • World Bank :? • H ~treet. f'.J.W .. Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-636() BANK NEWS RELEASE JULY 6, 1977 INDIA CONSORTIUM MEETING The fol lowing announcement was issued yesterday at the end of the India Consortium meeting in Paris. The Consortium of governments and institutions interested in development assistance to India met In F2ris on July 4 and 5, 1977 under the chairmanship of the World Bank. The meeting was attended by represen- tatives 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, the 6rganization for Economic Cooperation •• and Development, and the European Economic Community were represe~ted as observers. The Government of India was represented by~ delegation led by Mr. Manrnohan Singh, 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 requin!ments for the year 1t1h:ch began on April 1, 1977, in the context of medium-term requirements of the Indian economy. The members of the eonsortiun commended the Government of India for the continued good performance of the Indian economy. In 1976/77 foodgrain projection had been 111 million tons, industrial groi,.,th had reached 10 percent, and export earnings had grown by 25 percent. With continuing increases in domestic production of steel, fertilizer~, and oi I, there h~d been a further decline in imports; together with export growth and foreign remittances, this had led to a very favorable foreign exchange situation. Foodgra in stocks have reached a level of about 20 rni l J ion tonst which is sufficient to soften the impact cf a period of bad weat~er. The meeting stressed the need for the Government of India to take advantage or the present favo ra b J e pres pee ts for the economy and to pursue policies leading to sustained long-term growth. Of particular importance in this context are expansionary investment policies and appro- priate adjustments in import pol icy. Participants in the meeting noted •• with appreciatton the extent to which the Government shared these objectives, as reflected in the recent budget and import pol icy statement, and expressed the hope that the Government of India would continue its efforts in the ,· I . "' ..  - 2 - priority area of agriculture, with particular emphasis on alleviating nural poverty, as well as exports and energy. Continuing an effective family planning program was also emphasized. The meeting noted that, if suitable pol icy measures are taken and maintained, India's medium-:nd long-term development pro~pects are very favorable. • Members indicated the contribution they had alrady made or expected to make in the present year toward the achievement of India's medium-term objectives. The total level of commitments during the year is expected to be substantially higher than last year's level of about US $1 .3 bill ion. - 0 - • •