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Cabinet approves creation of a Project Development Fund to catalyse Indian economic presence in Cambodia, Laos, Myanmar and Vietnam

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Capital Market
Last Updated : Aug 31 2016 | 2:28 PM IST
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to create a Project Development Fund (PDF) with a corpus of Rs 500 Crore for catalysing Indian economic presence in the Cambodia, Laos Myanmar and Vietnam.

The PDF shall be housed in Department of Commerce and operated through the EXIM Bank. The PDF shall be governed by an Inter-Ministerial Committee under the chairpersonship of the Commerce Secretary.

Background:

CLMV countries namely Cambodia, Laos, Myanmar and Vietnam have a unique position in the regional value chains and offer a gateway for market access to China/EU and other markets due to various trade agreements. The key advantage of positioning India on the regional value chains is securing on a long term basis, a dedicated market for Indian raw materials and intermediate goods besides a dedicated source for inputs and raw materials for Indian industry. While opportunities are a plenty in CLMV region, Indian entrepreneurs' endeavors in these countries have, thus far, been limited due to limited information, infrastructure and other contingent risks. The PDF shall benefit India's industrial community for business expansion, and to maintain cost competitive supply chains, besides integrating with global production networks.

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First Published: Aug 31 2016 | 2:05 PM IST

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