Indian Development and Economic Assistance Scheme (IDEAS)

Context: India delivers fifty more buses to Sri Lanka at Presidential Secretariat premises under Economic Assistance Scheme of Indian govt.

About the scheme:

• Under this scheme, Government supported Export and Import Bank of India (Exim Bank) Lines of Credit (LoCs) are made available to developing countries for support of developmental and other projects as recommended by Ministry of External Affairs (MEA).
• It promotes India’s political, economic and strategic interests besides building a positive image of India abroad.

Do You Know?

• The IDEA Scheme initially known as the India Development Initiative had its genesis in the announcement made by Finance Minister in the Union Budget for 2003-04.

EXIM Bank

• Exim Bank was established by the Government of India, under the Export-Import Bank of India Act, 1981 as a purveyor of export credit, mirroring global Export Credit Agencies.
• Exim Bank serves as a growth engine for industries and SMEs through a wide range of products and services.
• This includes import of technology and export product development, export production, export marketing, pre-shipment and post-shipment and overseas investment.
• Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions, regional development banks, sovereign governments and other entities overseas, to enable buyers in those countries to import developmental and infrastructure projects, equipment, goods and services from India, on deferred credit terms.

Source: NewsOnAir

Previous Year Questions

Q.1) “Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which of the following:  (2022)

1. Asian Development Bank
2. International Monetary Fund
3. United Nations Environment Programme Finance Initiative
4. World Bank

Q.2) The Chairman of public sector banks are selected by the  (2019)

1. Banks Board Bureau
2. Reserve Bank of India
3. Union Ministry of Finance
4. Management of concerned bank