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India Approves ₹17,550 Crore Credit Lines for Global South Nations

UPSC / SSC current affairs note · Economy

International RelationsEconomy

Why in news

India has approved six Lines of Credit (LoC) totaling ₹17,550 crore over the past year to partner nations in the Global South. The aid aims to fund projects in infrastructure, connectivity, and other critical sectors to boost economic ties.

Background

India has been actively extending Lines of Credit to developing countries as part of its development partnership strategy, focusing on infrastructure, connectivity, and capacity building in the Global South.

Key facts

in5points
  1. India approved six Lines of Credit (LoC) worth ₹17,550 crore over the past year.

  2. The LoCs are aimed at boosting ties with Global South nations.

  3. MoS Kirti Vardhan Singh informed about the approvals.

  4. The aid targets infrastructure, connectivity, and other key development areas.

  5. The Global South includes developing countries in Asia, Africa, Latin America, and Oceania.

Prelims pointers

  • Lines of Credit (LoC): financial instruments extended by India to partner countries for development projects.
  • Global South: term referring to developing and least developed countries.
  • MoS: Minister of State.

Mains angles

  • Discuss India's development partnership strategy and its role in South-South cooperation.
  • Critically examine the effectiveness of Lines of Credit in enhancing India's influence in the Global South.
  • Analyze the economic and strategic implications of India's aid to Global South nations.