(a) whether the Government have decided not to seek further loan from International Monetary Fund;
(b) if so, the reasons therefor;
(c) the measures taken by the Government to improve the position of
Balance of Payment in view of increasing oil import bill; and
(d) the extent to which these measures have been successful?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(a) : No, Sir.
(b) : Does not arise.
(c)&(d): The Government`s overall policy of economic reform and
liberalization has helped to increase exports and promote
foreign capital inflows. Some of the measures taken to improve
and the effect thereof on the Balance of Payment position include:
(i) Various initiatives taken by the Government to encourage
the flow of Foreign Direct Investment as a result of which the FDI
inflow has increased from US $ 1217 million during April-October
1999 to US$ 1662 million during April-October 2000;
(ii) India`s export has grown by 20.5 per cent during April-October
2000, compared to 10.0 per cent during April-October, 1999;
(iii) Indian Millennium Deposit Scheme of the State Bank of India
has successfully mobilized US$ 5.5 billion. As a result, our
foreign exchange reserves (including gold and SDR) have increased
to US$ 39 billion at the end of November 2000 from US$ 38 billion
at the end of March 2000.
Thus, the overall Balance of Payment situation continues to remain
manageable despite extraordinary pressures of high international
oil prices.