According to official sources, the finance ministry on Monday here made a presentation to World Bank president, James D Wolfensohn. In the presentation, finance ministry officials informed Mr Wolfensohn that the foreign exchange reserves stood at $35 billion at the end of October, the external debt-GDP ratio was 22 per cent (March 2000), while the export growth rate is likely to exceed 18 per cent in dollar terms. And, inflation has been `consistently lower since 1995-96.' The government has apprised the World Bank that continued efforts are being made to reduce the fiscal deficit and the Fiscal Responsibility Act would be enacted. Further, the government intends to bring down its equity in PSU banks to 33 per cent. So far, the government has given a major thrust to divestment, liberalised the insurance sector, reduced food and fertiliser subsidy, set up the Expenditure Reforms Commission, diluted the FDI norms, has signed MoUs with states for fiscal reforms, liberalised the foreign trade regime, addressedissues in good governance and efforts are on to rightsize the bureaucracy.

Despite external shocks such as the East Asian crisis of 1997, economic sanctions (1998), the Kargil war (1999) and rise in international oil prices (2000), `India is on the move.'

On the relations between India and the Bank, the Indian Government has said that India was a major recipient of Bank assistance during 1990-99, as it got 11 per cent of the Bank's net disbursements. u Further strengthening the relationship, India assumed the chair of the Bank's development committee this year.

The government has stated the transport sector to be one of the best performing sectors in the India portfolio. There are five on-going projects with commitments worth $1.3 billion. And, the Bank is providing $1 billion for the National Highway Development Project.

The government told the Bank that it endorses the core concept of the proposed comprehensive development framework which addresses not only macro-economic and financial aspects but structural, social and human aspects too.

The government wants to increase the World Bank's annual commitments to $2 billion by the next fiscal and take it to $3 billion in 2002-03. The focus would be on states and sectors in line with national priorities with enhanced grant facilities and technical assistance to build up capacity in the weak states, the government said.