As India tries to increase its influence in the East Asian region, Exim Bank has increased its line of credit to the countries as part of the government’s "Act East" policy.
“The move is aimed at encouraging more Indians to set up manufacturing base in these countries and push for project development,” said Yaduvendra Mathur, chief executive officer, Exim Bank.
In the last two years, neighbouring countries including Cambodia, Laos, Myanmar and Vietnam — CLMV countries — have received 60% of the line of credit, which has almost doubled. Besides, the bank is also working with various states to chalk out state specific export policies.
“We have increased our focus on the countries such as Cambodia, Mongolia, Vietnam, Bangladesh among others. This is also in line with the government’s Act East policy,” Mathur said, adding that the number of Indian companies going in for strategic sale abroad has increased substantially.
Finance minister Arun Jaitley said in his budget speech that the government would actively cultivate economic and strategic relations in South east Asia.
“We want to encourage more and more Indian companies to go into these countries and expand their presence,” Mathur said. “We need to enhance trade relations too with other Asian and African countries.”
Exim Bank has also tied up with the New Development Bank. “For the first time there is more choice for financing of development projects,” he said.