NEW DELHI: Special assistance to India in the wake of the Gulf crisis was approved by the Asian Development Bank Monday in the form of a U S dollar 150 million equivalent loan.
The loan from the Bank’s ordinary capital resources will help alleviate economic difficulties brought about by the crisis by increasing the availability of diesel fuel to the country’s industry and transport sectors says an ADB press release
The special assistance approved recently will provide imported diesel inputs to minimize disruption to industrial production. India’s industrial sector directly accounts for one-third of gross domestic product.
The gulf crisis caused a worsening of India’s balance of payments and fiscal positions and an increase in the rate of inflation.
With foreign exchange reserves already at a low level before the crisis the government had to incur increased expenditures in imports of oil products and industrial inputs and to take administrative measures to restrict growth in consumption of oil products
Article extracted from this publication >> April 19, 1991
