The Hindu : National : U.S. Exim bank’s exposure to India set to grow

Online edition of India's National Newspaper
Friday, Nov 16, 2007
ePaper

National

National

U.S. Exim bank’s exposure to India set to grow

Special Correspondent

Its total exposure to India is $7 billion
Several Indian firms secure letters
of interest for starting projects

CHENNAI: The moderate growth in the U.S. Export-Import Bank’s exposure to India in the last few years is set to grow further and overtake its exposure to Mexico owing to a sudden upsurge in the rupee against the dollar, Bank’s Senior Business Development Officer Kristine Wood said on Thursday.

Talking to The Hindu, she said: “The total exposure to India till date is $7 billion, while to Mexico it is $15 billion. Several Indian companies have secured letters of interest for starting multi-million dollar projects in the power and infrastructure sectors. If that happens, India can overtake Mexico next year or in the 2-5 years.”

“Funds no constraint”

“In the last 2-3 years, we have sanctioned funds worth $2-3 billion to the Indian firms, and the average funding for a project ranges from $20,000 to $600 million. Funds are not a constraint. We usually lend $12-15 billion per annum, and the upper limit is demand-driven. The Reliance group and airlines companies have availed themselves of funds from us,” she said.

Attractive rates

Earlier addressing members of the Southern Indian Chamber of Commerce and Industry (SICCI), Ms. Wood said big Indian Corporates started approaching the bank since the U.S. funds were available at attractive rates. “Our mission is two-fold: to support U.S. exports; and to get paid back. We have lent $15 billion so far. We lend money directly and through guaranteed loans on medium term (up to 5 years and less than $10 million) and on long term (over 5 years and above $10 million). To take care of the growing business needs, we are planning to have an officer in India,” she said.

SICCI vice-president Jawahar Vadivelu said the bilateral trade had grown from $3 billion in 1991 to $15 billion in 2007.

India ranked among the 25 largest trading partners of the U.S., and it was set to move up further owing to various factors. The overseas acquisition by the Indian firms in recent times had exceeded the foreign direct investment flow in the country.

Printer friendly page
Send this article to Friends by E-Mail

National