The government today said India's trade with Japan, where massive earthquake and tsunami played havoc, has not been effected much.
"I think there has been some affect (of the crisis in Japan on trade), but of not an enormous magnitude," Commerce and Industry Minister Anand Sharma told reporters after the launch of a 'Buyer's Credit under NEIA' scheme to promote project exports from India.
Project exports comprise supply of machinery, turnkey projects, civil contracts and consultancy services.
Ruling out any impact of the Japanese crisis on India's overall trade, he exuded confidence that "whatever small losses" would happen to the bilateral commerce would be covered up as the world's third largest economy recovers.
Following the natural disaster, implementation of the India-Japan Comprehensive Economic Partnership Agreement (CEPA) would get delayed. The pact aims to take the bilateral trade to $25 billion by 2015.
The current trade is estimated at about $11 billion.
After achieving the $200 billion exports target for the fiscal 2009-10, the government now aims at least $450 billion overseas shipments by 2014.
A draft strategy paper to double India's trade has been floated by the Commerce Department for stakeholders' comments.
"Very soon you will see a strategy in place, which is aims at doubling India's exports," Sharma said.
It is a product developed by Export-Import Bank of India (Exim Bank) in conjunction with the Export Credit Guarantee Corporation of India (ECGC).
Sharma further said the NEIA scheme will go a long way in increasing project exports from India.
"Currently, not many projects exports are venturing out in overseas markets. In fact, the number of project exports is dwindling," he said. Developing countries are the major markets for India's project exports.
Under the scheme, direct credit would be extended to overseas buyers of projects from India.
"NEIA will lead to a substantial rise in exports. Credit period would normally be 5-8 years," Exim Bank Chairman and Managing Director TCA Ranganathan said.
Sources said a credit of about $2 billion would be extended under the scheme. However, a maximum of $100 million would be given towards one project.
Sovereign governments and state owned entities overseas can use the Buyer's Credit facility for financing import of projects from India on deferred payment terms.
Project exports were about $10.5 billion in the recent years.
