ABSTRACT
This chapter views an institutional arrangements and improvements needed to raise the quality of India's line's of credit (LOC). The Ministry of External Affairs (MEA) assumed guidance of India's developmental assistance agenda, and in 1966, the government of India (GOI) opened credit lines for friendly countries. The administration of Indian Development and Economic Assistance Scheme (IDEAS) comes under the guidelines issued by the Department of Economic Affairs (DEA) in 2007, revised and updated in July 2010 and September 2011. At the Addis Ababa Summit in 2011, Indian Prime Minister Manmohan Singh announced LOC commitments to Africa aggregating USD 13,956.49 million purchasing power parity (PPP) LOCs over the following three years a transformational initiative. LOCs not only finance localised civil projects, but go to projects with an enhanced focus on capability creation, thus contributing to sustainable development. Borrowing countries, particularly resource-rich ones, often play India and China against each other, sometimes even after the end of documentation and negotiations.
