EHRU MAY SEEK LARGE-SCALE FINANCIAL AID DURING US VISIT
US Emb New DelhiovOR OFFICIAL USE ONLY
The foreign exchange deficit in the Indian Second Five-Year Plan, which was originally estimatedas already risen to0ccording to Indianminister K. C. Reddy.
The minister told American officials in New Delhi that the rise was due to the world crisis andfreight and other Import costs. He also commented on India's difficulties in attracting American investment and said that high American prices seemed to preclude construction activity by US firms in India.
made repeated reference to India's credit needs, and explained that the price of goods to beunder0 loan which India recentlyfrom the USSR would be equated to therld competitive prices. Projects to be considered under thecredit, he said,ertilizerhipyard, another oilharmaceutical plant, and "heavyplants.
intensive Indian efforts to attract
Western capital have been unsuccessful--largely because of private investors' fear of the increasing pace of socialization in India. India's foreign exchangehave fallenercent in the last seven months.
Reddy's comments may be aimed atthe ground for new approaches for American aid during Nehru's visit to the United States betweenndecember.