DEVELOPMENT PROGRAMME OF INDIA

3. To these problems were added those arising from the partition of the sub-continent. A part of what had previously been internal trade in cotton, jute and foodgrains now became a feature of external trade, involving a net outward payment and a consequent aggravation of the balance of payments problem. In addition, abnormal expenditure of about R5.300 million a year on the rehabilitation of refugees and approximately R5.300 million on essential food subsidies intensified the budgetary problem. Moreover, the political and economic changes that followed the war adversely affected the flow of savings into the capital market. This is still the position, though not to the same degree. Basis and Objectives of the Programme 4. The scheme of development proposed for India is designed to improve the standard of living, to provide a minimum of social services and to supply sufficient capital and consumer goods to restrain inflation. To achieve these objectives it is proposed: (a) To undertake certain basic public development, such as irrigation and rural electrification, in order to increase agricultural production. (b) To increase the supply of fertilisers, agricultural implements and building materials, at a reasonable cost, in order to raise the yield of land under cultivation. (c) To develop and improve transport facilities. (d) To promote the full use of existing industrial equipment and capacity, and to extend the production of iron and steel. (e) To encourage industry in the villages in order to provide work for the under-employed and unemployed rural population. Description of the Programme 5. A great deal of work has already been started to meet development needs. The programme now contemplated embraces schemes already begun, and, in addition, others of high priority which could be undertaken as soon as adequate finance is available. In framing the programme, a list of projects in progress or ready for execution, with a total cost of R5.32,190 million, was investigated. From these a careful selection was made of the most urgent projects, estimated to cost Rs. 18,400 million. The Government of India consider that these represent the minimum of development necessary to achieve the objectives of the programme, and that after the six-year period they can be supported out of the country's own resources. The cost of the. programme is estimated as follows: Table 4. —India: Analysis of Programme Number Rs. £ Percentage of schemes (a) million million of total In hand New Agriculture 6,080 456 33 104 27 Transport and communications— Railways 4,8001 Roads ... ... 1,099 (_ 527 38 27 35 Ports and harbours... 110 f 7 ' 027 52 ' Others 1,018 J Fuel and power 576 43 3 27 2 Industry and mining (ft) ... 1,800 135 10 21 23 Social capital— Education 1,1441 Healtli 5 7 2 > 913 218 16 105 50 Others 1,071 J Total 18,396 1,379 100 284 137 (a) Costing more than Rs. 2• 5 million (£190,000). (b) Excluding coal.

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