§ Mr. Clemitsonasked the Minister of Overseas Development if she will make a statement on the reasons for the difference between actual expenditure and total estimated provision of aid to India between 1973–74 and 1977–78 of £36.060 million and 1977–78, in particular of £17.472 million.
§ Mrs. HartPast shortfalls of budgeted expenditure for India have been caused by slower growth in the Indian economy and thus a lower intake of imports than 245W had been expected. As most of our aid over these years was tied to the provision of United Kingdom goods and services, aid spending depended on Indian customers wishing to purchase from the United Kingdom. Because of fierce competition from other suppliers, purchases expected to be made in the United Kingdom were sometimes made elsewhere.
Expenditure in 1977–78 was affected by these general factors and by slippage in the implementation timetables for certain major new Indian projects. Important discussions have taken place with the Government of India, and I expect the 1978–79 figures to be much better.