From 50 Years Ago: Import Credits and Export Cover.

Those who had thought that the Ministry of Commerce and Industry had pitched its hopes too high in asking importers of capital goods to secure foreign investments in their undertakings to the extent at least of the value of the plant and machinery to be imported or to arrange for credit from their overseas suppliers for seven years, may soon have to revise their opinion, if the response of the French Embassy in New Delhi is any indication. France is neither among the leading suppliers of capital equipment to India nor is it among the leading capital exporting countries. Nevertheless, some of the French banks and credit institutions have been energetic and resourceful. In a survey of Foreign Loans, Aid and Export Credit prospects published in the last Annual Number, it had been hinted that though the cost might be high, special arrangements for French credit was by no means out of the bounds of possibility. It is not surprising, therefore, that the French should have been the first to respond to Delhi’s quest for foreign credit.

In a circular letter addressed to the Chambers of Commerce a month ago, Shri L K Jha had explained the line of development that his Ministry would welcome in order to avoid a cut in imports of capital goods which had been inevitable. Setting out the policy that would remain in force for the first half of the year, Shri Jha had said that priority had to be given to those items whose import was essential for maintaining economic activity at its present level and schemes of new development, however important and desirable in themselves, must in general take second place. In fact, for this licencing period, allotment for the import of capital goods for new schemes had been fixed at a very low figure.