The design was developed to meet a 1950 requirement for an aircraft to carry citrus fruits (and in particular, oranges) from the west of Argentina to Buenos Aires, there being no rail links (except to San Luis, Mendoza and other cities) while the roads were inadequate for heavy trucks.
[1][2] It was an all-metal tailless shoulder-wing swept monoplane, with the vertical control surfaces located near the tips of the wings.
The short, stubby fuselage was fitted with a tricycle landing gear, with a retractable nosewheel and fixed mainwheels.
[2] The IA 38 proved to be difficult to control, and was underpowered, giving a poor performance, while the engines also suffered from overheating.
[2] After the project was cancelled, the IA 38 was placed in the grounds of the Aeronautical School, where it was used as a static display until a fire (suspected to have been an act of arson) destroyed the aircraft's skin.