Union Cabinet on 31 August gave its approval to create a Project Development Fund (PDF) for catalysing Indian economic presence in the Cambodia, Laos, Myanmar and Vietnam (CLMV). The PDF will be created with a corpus of 500 Crore rupees.
CLMV countries have a unique position in the regional value chains and offer a gateway for market access to China/EU and other markets due to various trade agreements.
• PDF will be housed in Department of Commerce.
• It will be operated through the EXIM Bank.
• It will be governed by an Inter-Ministerial Committee under the chairpersonship of the Commerce Secretary.
• India will have the advantage in the regional value chain by securing a dedicated market for domestic raw materials and intermediate goods on a long term basis.
• This regional access will provide a dedicated market for Indian raw materials and intermediate goods besides a dedicated source for inputs and raw materials for Indian industry.
As per government, despite plenty of opportunities in the CLMV region, Indian businesses in these countries so far have been constricted due to limited information, infrastructure and other contingent risks.
Creation of the PDF will benefit India's industrial community for business expansion, and maintain cost competitive supply chains, besides integrating with global production networks.
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