Though neither the Bank nor Indian officials gave details of the Wolfensohn-Sinha meeting, according to informed sources the drastic reduction in the World Bank's funding to India in fiscal 1999 reportedly figured in the discussion.

In fiscal 1999, which ended on June 30, the World Bank approved seven projects for India, involving loans of $1.05 billion as against 11 projects with a loan quantum of $2.1 billion in the previous year -- a reduction of 50 per cent in a year. According to reports, India had asked for the World Bank funding of $3 billion for variousinfrastructural projects in fiscal 1999. Apparently, the Bank's unwillingness to consider India's projects had resulted in the cut of its share in the funding.

The change in the World Bank' attitude, which has all along been very considerate to India, is the result of the US-led global sanctions against its May 1998 nuclear tests. The Bank has acknowledged this fact in its annual report which was made public last week Otherwise, the World Bank is happy with the economic trends in India, an indication of which was given by Wolfensohn himself. Wolfensohn, however, said, "I have a lot of confidence in the government (of India). I think we should wait and see what happens as a result of the elections. But it's been my experience in the past that the Indian Government establishes its own programmes. It consults with us, but I think it has been quite successful, and it wouldn't be my intention to suggest anything radical to the government."