Exim Bank of India and the government of Zambia have signed an agreement for a line of credit of US$10mn to finance exports from India to Zambia. This is the third credit line being extended to Zambia. The first two of Rs10 crores and Rs5 crores were extended in 1979 and 1982.
Under the credit of US$10mn, importers are required to make advance payment of 10% of contract value to Indian exporters and the balance 90% of contract value would be reimbursed by India Exim to Indian exporters, upfront upon shipment of goods. The credit line can be utilised for export of capital goods, plant and machinery, industrial manufactures, consumer durables and any other items eligible for being exported under the ‘Exim Policy’ of the government of India.
India’s exports to Zambia are in the region of US$26mn. The main items in India’s export basket to Zambia are machinery and instruments, transport equipment, drugs, pharmaceuticals and fine chemicals, cotton yarn fabrics and made-ups.