From 50 Years Ago: Improvement in Reserves.

The rate of decline of our sterling balances was much lower during the second half of 1958 than the rate during the first two and quarter years of the Second Plan period; and in fact since November 1958, our foreign exchange reserves have recorded a small increase. Does this shift indicate any basic improvement in our exports?

The data so far available do not show any increase in exports during the second half of 1958 as compared to the level of exports during the corresponding period of 1957; exports during this period probably declined by about Rs 10-20 crores over the correspond-ing period a year ago. The improvement in the position of reserves was, thus, attributable p rimarily to decline in imports, larger utilisa-tion of external assistance and some capital-inflow on private and government account.