The World Bank has made a significant contribution to India’s planned economic development through its direct as well as indirect assistance. Important aspects of the Bank’s assistance are as follows:
India is a founder-member of the Bretten Woods twins, i.e., the IMF and the World Bank; it has a permanent place on the Bank’s Executive Board
India has been the largest recipient of development finance from the Bank. India’s share in the Bank’s total lending to all countries in 1988 was 15%.
3. Assistance from IDA:
World Bank’s subsidiary institution international development Association (IDA) provides loans from its soft window. In 1980-81, India received loans of Rs. 522 crore from IDA. This amount increased to Rs. 1198 crore in 1985-86 and to Rs. 3064 crore in 1997-98.
4. Assistance from Aid India Club:
In 1950, the World Bank founded Aid India Club to provide massive assistance to finance India’s developmental plans. Aid India Club is a consortium of the major lending countries, such as, U.K., U.S A., Germany, France, Japan, Canada, etc.
The Aid India Club provided financial assistance to India to the tune of Rs. 1999 crore in 1980-81, which increased to Rs. 2552 crore in 1985-86 and to Rs. 9208 crore in 1997-98.
5. Purpose of Loans:
The World Bank’s assistance to India has been mainly for development purposes. The major projects finance by the Bank are railway, generation of power, multi-purpose projects, port development, development of aviation, iron and steel industry, coal mining, agriculture, telecommunication, etc.
Besides this, the World Bank has also extended loans to the financial institutions like Industrial Development Bank of India (IDBI) and Industrial Credit and Investment Corporation of India (ICICI).
6. Technical Assistance:
The World Bank has also provided useful technical assistance in India’s development plans. It has sent a number of missions to India to evaluate the working and progress of her Five Year Plans and to asses the foreign exchange requirements of the country.