Indian Development and Economic Assistance Scheme (IDEAS)
Lines of Credit (LoCs) form an important component of India’s diplomatic strategy and have been very useful in generating goodwill and building long term partnerships. GoI extends Lines of Credit to Developing African and Non-African Countries through Indian Development and Economic Assistance Scheme (IDEAS). With the approval of the Cabinet, the Indian Development and Economic Assistance Scheme (IDEAS) have been revamped and continued till 31 March, 2026, or till further review, whichever is earlier.
LoCs are being operated through Export-Import Bank of India, which raises resources from the market and provides LoCs to recipient Government at concessional rates. GoI backs the LoCs through a Deed of Guarantee in favour of the lending bank to guard against any default by the borrowing Government in payment of interest and principal to the lending bank. GoI also extends interest Equalization Support (IES) to the lending bank for enabling it to lend on concessional terms.
Sectoral Charge Ministry of External Affairs
External Territorial Charge Africa (Except South Africa)
Policy on Lines of Credit
For about four decades, Department of Economic Affairs on behalf of Government of India had been extending Lines of Credit (LOCs) to friendly developing foreign countries. These LOCs were essentially Government to Government Credit Lines as the credit agreement were signed between GoI and the Government of the recipient country.
Till 2003-04, the LOCs were from Government to Government. Accordingly, the full amount covered by the LOCs, used to be provided in the Budget. Since, 2003-04, the system has been substituted by extending GoI supported Lines of Credit through Exim Bank of India.
Classification of Countries
The countries have been classified into the following three broad categories:
- Category I: Low and Lower Middle Income (L&LMI) countries for which International Monetary Fund (IMF) has prescribed a minimum binding concessional requirement.
- Category II: Low and Lower Middle Income (L & LMI) countries for which there is no minimum binding concessional requirement.
- Category III: Other developing countries.
| Class of Country | Name of Country |
|---|---|
| Category I | Afghanistan, Bangladesh, Burkina Faso, Burundi, Central African Republic, Chad, Cote d’Ivoire, Gambia, Ghana, Guinea, Honduras, Kenya, Kyrgyz Republic, Liberia, Malawi, Mali, Mozambique, Niger, Rwanda, Sierra Leone, Sao Tome and Principe, Senegal, Solomon Islands, Tanzania, Uganda, Republic of Yemen. |
| Category II | Angola, Benin, Bhutan, Bolivia, Cambodia, Cameroon, Comoros, Democratic Republic of Congo, Djibouti, Egypt, El Salvador, Eritrea, Eswatini, Ethiopia, Guinea Bissau, Guatemala, Guyana, Haiti, Indonesia, Kiribati, Democratic People’s Republic of Korea, Lao PDR, Lesotho, Madagascar, Maldives, Mauritania, Federated States of Micronesia, Moldova, Mongolia, Morocco, Myanmar, Nepal, Nicaragua, Nigeria, Pakistan, Papua New Guinea, Paraguay, Philippines, Republic of Cabo Verde, Republic of Congo, Seychelles, Somalia, South Sudan, Sri Lanka, Sudan, Syrian Arab Republic, Tajikistan, Timor Leste, Togo, Tunisia, Ukraine, Uzbekistan, Vanuatu, Vietnam, West Bank and Gaza, Zambia, Zimbabwe. |
| Category III | Other Developing countries. |
