USD 1 bn line of credit for Russia's Far East to provide biz opportunities: TPCI

India's decision to extend USD 1 billion line of credit for the development of Russia's Far East will provide huge business opportunities in that region to domestic companies, Trade Promotion Council of India (TPCI) said on Friday.

It will help domestic businesses to explore opportunities in CIS countries which include Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.

"The announcement by Prime Minister Narendra Modi will go a long way to promote Indian economic presence in the CIS region," TPCI Chairman Mohit Singla said in a statement.

India on Thursday announced an "unprecedented" USD 1 billion line of credit for Russia's resource-rich Far East with Modi vowing to support President Vladimir Putin's "stupendous efforts" to develop the extremely harsh region.

"Our effort to enter the CIS market had always been a daunting challenge owing to various counter factors such as expensive freights and poor market access. It will also enthuse India exporters as they would get market access and working experience to Indian suppliers in Russian projects," he said.

Indian companies can now set up a manufacturing cluster, wherein they can use imported and local resources of Russia and sell their products, which had been lying uncompetitive since long, he added.

India's exports to CIS countries were valued at USD 3.4 billion in 2018 while imports were USD 10.59 billion.