India Ex-Im Bank has extended a line of credit of US$5mn to the government of Angola to finance India’s exports to Angola. Under the letter of credit, importers from Angola 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 Ex-Im to the Indian exporters, upfront upon the shipment of goods. The credit period available to the importers, through the government of Angola, is up to five years.
India’s exports to Angola amounted to US$37mn during 2002-03, registering a growth of 48% over the previous year’s exports of US$25mn. Meat and its preparations, drugs, pharmaceuticals and fine chemicals, cotton yarn fabrics and made-ups, machinery and instruments, transport equipments and ready-made apparels were the principal items in India’s export basket to Angola in 2002-03.
During April-July 2003, India’s exports to Angola stood at US$30mm, an increase of almost 200% as compared to US$10mn, during the same period in the previous year. Potential areas that Indian exporters can focus on are export of Indian capital goods and services for sectors like railways, engineering, fishing as well as products like drugs and pharmaceuticals, to Angola. There also exists considerable potential for setting up joint ventures in Angola in sectors like pharmaceuticals and engineering goods.