The Age Of Stars

Reserve Bank of India · regulation · 27 February 1951

Reserve Bank of India: Exchange control extended to Pakistan and Afghanistan; the Pakistan rupee treated as a foreign currency for…

Exchange control extended to Pakistan and Afghanistan; the Pakistan rupee treated as a foreign currency for all purposes

VerifiedOfficial record. Source: RCF5051

Government of India · 1 July 1951

Government of India: New long-term Sterling Balances Agreement beginning 1 July 1951: £310m transferred from No

see magnitudes

2 to No. 1 Account as a currency reserve; £35m/yr for six years; £340m No. 1 Account floor; £5m anticipation; any No. 2 balance at 30 June 1957 transferred automatically to No. 1

VerifiedOfficial record. Source: RCF5152

State Bank of Pakistan / HM Treasury · regulation · 29 September 1951

A new Financial Agreement between the UK and Pakistan is signed at London, to deal with Pakistan's sterling…

A new Financial Agreement between the UK and Pakistan is signed at London, to deal with Pakistan's sterling balances "during the next six years" and to replace, so far as it applies to Pakistan, the Agreement of 14 August 1947. In force 29 September 1951 with retroactive effect from 1 July 1951

VerifiedOfficial record. Source: UNTS134-1798

sterling balances

Indo-UK Sterling Balances Agreement (extension), 1 July 1951 – 30 June 1957

£310m to the No. 1 Account as a currency reserve; £35m/yr transfers for six years; £340m floor; £5m anticipation; automatic sweep of any residual No. 2 balance at 30 June 1957

VerifiedOfficial record. Source: RCF5152

foreign exchange

Exchange control extended to Pakistan and Afghanistan, 27 February 1951

Pakistan rupee treated as a foreign currency for all purposes; capital, dividend, interest, pension and profit remittances to Pakistan suspended pending reciprocal facilities

VerifiedOfficial record. Source: RCF5051

Industries (Development and Regulation) Act, 1951 (in force 1952-05-08)

Industrial licensing: the core of the licence-permit raj

ReportedOfficial record. Source: India Code

Tariff Commission established (1951-01-21)

Case-by-case protection of domestic industry (import substitution)

ReportedOfficial record. Source: Government of India

First Plan import policy: progressive relaxation (larger quotas and Open General Licence items in the Korean-boom period, partly reversed 1952)

Panagariya calls 1951-52 to 1955-56 "progressive liberalisation", ending with the 1956-57 crisis

ReportedPeer-reviewed. Source: Panagariya, "India's Trade Reform" (Brookings/IPF, 2004)

Colombo Plan starts (1951-07-01). Conference of Commonwealth Foreign Ministers, Colombo, Jan 1950.

Commonwealth development programme

The UK's main "contribution" was scheduled releases of India's own sterling balances. Canada, Australia and New Zealand gave grants (Canada: C$25 mn in year one, including a C$10 mn wheat grant to India).

ReportedPeer-reviewed. Source: Campbell-Miller (2015); Abreu TD 643