The Centre has allocated ₹ 3,849 crore for the Indian Development and Economic Assistance Scheme (IDEAS) in the budget 2024-25. Under the scheme, the Government of India, through the Export-Import Bank of India (Exim Bank), extends concessional credit to partner countries. The scheme is aimed at sharing India's development experience by way of infrastructure development, capacity building, trade, and skill transfer. Exim Bank has offered concessional credit aggregating $33.56 billion to 66 countries across Africa, Asia (excluding Bangladesh, Nepal, and Bhutan), Latin America, Oceania, and the CIS region.
Exim Bank was established as a manager of export credit and mirroring global export credit agencies by the Government of India under the Export-Import Bank Act of 1981.
The bank acts as a growth engine for industries and small and medium-sized enterprises through a wide range of products and services.
Before the establishment of the Exim Bank, the Department of Economic Affairs had been extending Lines of Credit (LOCs) to friendly developing foreign countries on behalf of the Government of India.
Since these LOCs were effectively "Government to Government" (G to G), the credit agreements were signed by the governments of India and the recipient country.
Till 2003-04, the LOCs were from government to government. Accordingly, the full amount covered by the LOCs has an outlay in the Budget. Thereafter, this system has been substituted by extending GOI-supported Lines of Credit through the Exim Bank of India.
The Budget 2023 made an outlay of Rs 1300 crore for IDEAS, a marginal cut from the revised estimate of Rs 1320 in the preceding budget.
(Edited by : Sudarsanan Mani)
First Published: Feb 1, 2024 5:18 PM IST
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