Exim Inks Pact With Thai Kin
Export-Import Bank of India (Exim India) and Export-Import Bank of Thailand (Exim Thailand) signed a memorandum of understanding (MoU), yesterday in Bangkok for a line of credit (LoC) of $10 million.
This will facilitate export from India of, capital and engineering goods, consumer durables, industrial manufactures and related services. The MoU was signed by Y B Desai, managing director, Exim India, and M R Pridiyathorn, managing director, Exim Thailand.
According to this MoU, Thai importers will get finance up to 90 per cent of contract value, provided by Exim India, on a deposit of the balance 10 per cent which the importers will have to pay.
Indian exporters will be reimbursed by Exim India on shipment of goods to Thailand.
The MoU also provides for an exchange in information on trade and investment opportunites to increase the co-operation within firms between the two countries. This will involve activities like locating joint venture partners and organising seminars and workshops.
In 1998-99, the exports from India to Thailand were $319.68 million. The share of manufactured goods was $238.58 million and that of engineering goods was $41.82 million.
Machinery and instruments, transport equipment, electronic goods were the main items exported from India.
The main imports from Thailand were artificial resins, plastic materials, textile yarn fabrics, electronic goods, non-electrical machinery, newsprint and petroleum crude products.
A number of Indian companies like Lupin Laboratories, Sterling Strips, Ranbaxy Laboratories, Sintex International, Balmer Lawrie, Birla Brothers, Grasim Industries, Ballarpur Industries, Unitech, Usha Martin Black, Indian Dyestuff, Binani Zinc, Baroda Rayon are operatin joint ventures in Thailand in sectors like textiles, chemicals, pharmaceuticals, metallurgy, paper trading and consultancy. A few projects are in the pipeline.
Exim Thailand is a wholly owned subsidiary of the government of Thailand.It offers long term as well as short term credit, in domestic and overseas markets in their currency Baht as well as foreign currencies.