India Exim Bank has extended a line of credit of US$50mn to the government of Sudan, to support India’s export of equipment, goods and services to that country.
Under the line of credit to the government of Sudan, the importers from Sudan are required to make advance payment of 10 % of contract value to the Indian exporters and the balance 90% of contract value would be reimbursed by India Exim to the Indian exporters, upfront upon the shipment of goods. The credit period available to the importers, through the government of Sudan, is up to eight years, inclusive of a suitable moratorium.
India’s exports to Sudan amounted to US$ 105.20 million during the year 2002-2003. Machinery and instrument, transport equipments, drugs, pharmaceuticals and fine chemicals, manufactures of metals and primary and semi finished iron and steel were the principal items in India’s export basket to Sudan in the year 2002-03. Potential areas that Indian exporters can focus on, are equipment for rural electrification and railways, transportation vehicles and equipments, drugs and pharmaceuticals, machinery and instruments, textiles and related items. There also exists considerable potential for setting up joint ventures between Indian and Sudanese partners in sectors like textiles, pharmaceuticals and chemicals, information technology and small scale industries sector.
Exim Bank has in place a number of Lines of Credit for promoting India’s exports to countries in Africa, Asia, Latin America, East Europe and Russia.