Benefits of World Bank to India
India is the founder member of the World Bank and it had a permanent position in its Board of Executive Directors. The World Bank has helped India in attaining economic development. It grants loans, offers expert advice and imparts training to Indian personnel through its Economic Development Institute.
In November 1951, a World Bank delegation visited India, reviewed development and assessed further assistance from the Bank. In 1952, the president of the World Bank visited India to explore the possibilities of financing specific projects. In 1956, another delegation visited India to review her development under the first five year plan. A resident representative was appointed in New Delhi by the bank to assess the progress of development plans and projects.
In February 1960, a three-member bank mission, comprising of Sir. Olive Franks, Mr. Allen Prousal and Dr. Herman assessed the possibilities of assistance required in the implementation of the third five year plan.
The Madhya Pradesh State Government sought the assistance of the bank for a Rs.50 crore project to reclaim 2.25 lakh acres of land along the Chambal river and its tributaries. In June 1970, the bank deputed a team to M.P, to study the feasibility of the scheme.
In August 1970, a seven member bank team studied in depth a family planning programme in Uttar Pradesh. It assessed the feasibility of launching a special project for intensive implementation of family planning scheme.
The amount of financial assistance extended by the bank during the period from August 1949 to June 1992 was the order of 20,599.2 million dollars through 147 loans. About 50% of this assistance was meant for the improvement of transportation i.e., railways, ports, roads and airways. While 28 per cent of the sum was earmarked for electric power development, agriculture received about per cent of the assistance.
India got an assistance of 5,472 million dollar during third five year plan from All India Consortium, created with the help of the World Bank.
The World Bank played a significant role in the signing of Indus water treaty in September 1960, This ended the 13-year old dispute between India and Pakistan.
In 1971 and 1972, several agricultural projects were financed in Punjab to the extent of 39 million dollars. Under these projects, 8000 tractors and other farm equipment were bought to boost farm products in the market.
By October 2001, the cumulative assistance extended by the bank to India worked out to 56 billion US dollars. No single country ever received such a huge sum from the World Bank,