The Union Cabinet has given its approval to create a Project Development Fund (PDF) for catalysing Indian economic presence in the CLMV countries viz. Cambodia, Laos Myanmar and Vietnam.
The PDF will have corpus of Rs 500 Crore and shall be housed in Department of Commerce. It will be operated through the EXIM Bank.
- The PDF will be governed by an Inter-Ministerial Committee under the chairpersonship of the Commerce Secretary.
- It will benefit India’s industrial community for business expansion in the CLMV countries.
- Besides it will also help to maintain cost competitive supply chains, besides integrating with global production networks.
- CLMV countries namely Cambodia, Laos, Myanmar and Vietnam have a unique position in the regional value chains in Southeast Asia region.
- These countries offer a gateway for market access to China, European Union and other markets due to various trade agreements.
- Thus, creation of Project Development Fund (PDF) will give key advantage position to India in securing regional value chains on a long term basis.
- Besides, it will provide a dedicated market for Indian raw materials and intermediate goods and also a dedicated source of raw materials for Indian industry.