Lines of Credit
| Published date | 01 January 2016 |
| DOI | 10.1177/0020881717708081 |
| Author | Prabodh Saxena |
| Date | 01 January 2016 |
| Subject Matter | Articles |
Lines of Credit:
Policy Matrix Revisited
Prabodh Saxena1
Abstract
Development cooperation is an integral part of India’s foreign policy and India
has been extending cooperation to its fellow developing countries since even
before its independence in 1947. In present times, India’s development coop-
eration is manifested through its ‘development compact’ comprising five com-
ponents, namely capacity building and skill transfer, technology and related
partnerships, development finance (which includes concessional loans and lines
of credit [LOCs]), grants, and trade and investment. Of late, Indian extension of
LoCs through the EXIM Bank of India has also become a prominent modality of
development cooperation. However, in many a cases it has been seen that the
projects faced a number of challenges for effective delivery. This article explores
these challenges and other issues related to quality and timely delivery of the
projects. It also explains the evolution of the scheme IDEAS and discusses new
guidelines by the Government of India.
Keywords
Development compact, LoCs, DPRs, PMC, IDEAS, South–South cooperation
Introduction
With modest beginning in the years of freedom struggle, India’s development
cooperation programme with the fellow developing countries has come a long
way. At present, apart from capacity building (which continues to be key focus),
India’s development cooperation is manifested through its ‘development compact’
comprising five components: capacity building and skills transfer, technology and
related partnerships, development finance (which includes concessional loans and
lines of credit [LoCs]), grants, and trade and investment (which also includes
Duty Free Quota Free [DFQF] scheme).
Article
International Studies
53(1) 44–58
2017 Jawaharlal Nehru University
SAGE Publications
sagepub.in/home.nav
DOI: 10.1177/0020881717708081
http://isq.sagepub.com
1 Principal Secretary, Government of Himachal Pradesh, Shimla, India.
Corresponding author:
Prabodh Saxena, Principal Secretary, Government of Himachal Pradesh, Shimla, India.
E-mail: prabodh.saxena@yahoo.com
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