The Indian Development and Economic Assistance Scheme (IDEAS) operates the Lines of Credit (LOC) through ______.

The correct answer is EXIM Bank.

Key Points

• The Indian Development and Economic Assistance Scheme (IDEAS) facilitates Lines of Credit (LOC) to partner countries to support developmental projects.
• EXIM Bank (Export-Import Bank of India) is the implementing agency responsible for operationalizing the LOC under the IDEAS framework.
• EXIM Bank extends these LOCs on behalf of the Government of India to promote economic ties and export growth.
• The LOCs under IDEAS are aimed at financing infrastructure, industrial, and developmental projects in recipient countries, primarily in Asia, Africa, and Latin America.
• This initiative strengthens India's soft power and enhances bilateral trade and investment relations with partner nations.

Additional Information

• Export-Import Bank of India (EXIM Bank):
  • EXIM Bank was established in 1982 under the Export-Import Bank of India Act, 1981.
  • It is a specialized financial institution tasked with financing, facilitating, and promoting India’s international trade.
  • EXIM Bank plays a critical role in supporting Indian exporters and overseas investments through credit and guarantee programs.
• Lines of Credit (LOC):
  • LOCs are concessional loans extended by EXIM Bank under the IDEAS scheme to enable partner countries to import goods and services from India.
  • The terms of these loans typically include lower interest rates and longer repayment periods.
  • LOCs often focus on sectors such as energy, transportation, agriculture, and healthcare.
• Objectives of IDEAS:
  • To strengthen India’s diplomatic and economic relationships with other nations.
  • To promote Indian exports, particularly in capital goods, machinery, and project services.
  • To contribute to the development of infrastructure and human resources in partner countries.
• Key Beneficiaries:
  • Recipient countries in Asia, Africa, Latin America, and the Caribbean.
  • Indian exporters and industries benefit through increased demand for Indian goods and services.
  • Strengthening of bilateral ties enhances India's strategic and economic interests globally.