NEW DELHI: Although a late starter, India is fast catching up with China in extending credit world over to build infrastructure and push economic ventures. The Modi government has extended $24.2 billion line of credit ($10 billion between 2003 and 2014) to partner countries.
Fifty-two lines of credit have been issued since 2014 and more are in the offing, when Jordanian king and Belarusian President visit India later this year.
While correcting malpractices that had crept into India's African endeavours, New Delhi had completed 20 major ventures in the past two years, official sources told ET.
The focus under line of credit, extended through MEA's Development Partnership Administration wing, was now on key infrastructure projects and not just capacity building, sources said, referring to two such endeavours in Africa — presidential office in Ghana (symbol of Indo-Ghana friendship) and National Assembly building complex in Gambia.
Such iconic symbols of bilateral partnership have been hallmark of Chinese presence across continents. "Such projects have political significance and contribute to overall strengthening of bilateral partnership between two countries," said an expert who has closely followed Chinese infrastructure projects across Asia and Africa.
While China dictates type, terms and conditions of projects for which it extends grants, Indian approach is consultative in nature keeping local sentiments in mind.
A non-traditional area where India has extended the line of credit during the past three years is the defence sector — Vietnam ($500 m), Bangladesh ($500 m), Sri Lanka ($100 m) and Mauritius. India has received requests for supply of defence equipment from friendly countries in SE Asia, Africa and Latin America too. Such lines of credit extended by India are expected to grow in the coming years, according to an expert who has followed India's defence partnerships across regions.
