INDIA AND WORLD BANK

Introduction India’s involvement with the World Bank dates back to its earlier days . India was one of the 17 countries which met in Atlantic City , USA in June 1944 to prepare the agenda for the Bretton Woods Conference , and one of the 44 countries which signed the final Agreement that established the Bank . In fact the name “ International Bank for Reconstruction and Development “ ( IBRD ) Was first suggested by India to the drafting Committee “

The World Bank was established in 1946 as twin institution with the IMF( International Monetary Fund ) as a result of the Bretton Woods Conference . It assists reconstruction and development of the needy countries through long and Medium term loans . It pays special attention to the development of under- developed countries . The World Bank advances loans to the developing countries subject to the following conditions . 1. The overall economy of the borrowing country is soundly operated 2. If the overall economic plans would reinforce the basic soundness of economy and 3. The Projects which the bank is asked to finance have been carefully prepared and are economically and financially justified .

The World Bank has given a large financial assistance to India for economic development . Special mention may be made of the assistance World Bank has given to India in the development of Infrastructure such as Electric Power , Transport , Communication, Irrigation Projects , Steel Industry For a long period , India was the largest borrower from the World Bank . At present India is the third largest borrower of funds from the World Bank . Till June , 1999 India got , 172 Loans amounting to 26 Billion US Dollars from World Bank .

The Bank lending to India started in 1949 , when the first loan of $ 34 Million was approved for the Indian Railways . The first decade of the Bank’s lending to India ( 1949- 1959 ) saw just about 20 loans for a total amount of $ 611 Million . During the years 1960- 69 , overall lending to India from the Bank rose to $ 1.8 Billion .