India has launched a programme to boost exports to the Commonwealth of Independent States (CIS).

The programme includes several trade finance facilities and includes support for letters of credit (L/Cs) for Indian businesses looking to break into new or wider markets in central Asia.

Increased interaction

Launched in April, the Focus CIS programme will initially concentrate on promoting business links between Indian companies and those in Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan, Tajikistan, Azerbaijan and Ukraine.

The main objective of the programme is to increase mutual direct interactions among businessmen by identifying the areas of bilateral interest and investment according Union Minister of Commerce & Industry and Law & Justice Shri Arun Jaitley.

Potential

He says the CIS region offers tremendous potential for bilateral trade and investment. India's total trade with these countries was US$1.7 billion during 2001-02 with exports accounting for US$967.63 million and imports worth US$737.64 million.

In one aspect of the programme, Indian exporters can obtain cover from pre-approved banks for L/Cs from the Export-Import Bank of India. This facility is in turn guaranteed by the European Bank for Reconstruction and Development, which focuses its activities on emerging economies in central Europe and central Asia.

Other support

The World Bank and other international organisations also make funds available for business development in the CIS. Support for Indian companies looking to do business in this part of the world may also benefit from services provided by the likes of the India Trade Promotion Organisation and India's export promotion councils.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.