India stands to gain immensely from improved trade relations with Africa in the form of the gains from trade, investment benefits and import benefits mainly in the form of food security, energy security and non–fuel mineral resources. Given the economic situation of most of the African countries, credit plays an important role in improving business engagement in the continent. This also enables Indian exporters to enter new geographies or expand their business in existing export markets without any payment risk from overseas importers.
TARI’s already in-progress joint study with ASSOCHAM endeavors to revisit and explore the possibilities of restructuring the lines of credit and buyers credit extended to African countries by the Government of India. The principal objective is to find out more effective ways to implement existing schemes and programmes.
The outcome of the study will provide the basis for preparing a set of policy recommendations to re-structure export credit extension to African countries which will provide greater depth to the Indo-Africa trade partnership.
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