India Ex-Im Bank has extended a line of credit of US$5mn to the government of Lesotho in Southern Africa, to support India’s export of equipment, goods and services to that country.
Under the credit line, importers from Lesotho 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 Bank to the Indian exporters, upfront upon the shipment of goods.
India’s exports to Lesotho were a meagre US$5.59mn during 2003-04. Cotton yarn fabrics made-ups, drugs, pharmaceuticals and fine chemicals, glassware and ceramics were the principal items in India’s export basket to Lesotho in 2003-04.
The credit line will facilitate and enhance India’s trade level with Lesotho. Lesotho’s delegation has indicated agricultural equipment and implements as the priority items for imports from India under the line.