The Export MoU between India and Korea has been approved by Indian Government. The Union Cabinet meeting has been chaired by the Indian Prime Minister Narendra Modi where between India and Korea the proposed Memorandum of Understanding was discussed and approved. Export credit worth 9 billion dollars has been laid out for offering in this MoU.
To collaborate for the amount of 9 billion dollars Export-Import Bank of India (EXIM Bank) from India and the Export-Import Bank of Korea (KEXIM) from Korea will come together which will be used for infrastructural development in India. The MoU is responsible for the creation of better cooperation so the goods and services flow easily and also it works on the directed to the third world countries.
Within 1-15 June the signing of this MoU is expected to happen when for the Annual Financial Bilateral Trade Dialogue Indian Finance Minister Arun Jaitley will be travelling to Seoul, Korea and the cabinet approval has come just in time
The trade between the two countries will improve by this the agreement as it is going to be significant.
The export credit will be used for the promotion of projects such as railways, smart cities, generation and transmission of power and more and the EXIM Bank will facilitate this.
In 2015 the Korean Prime Minister had visited India after which for the development of infrastructure in India about an offer of 10 billion dollars the Korean Government talked.
After this, from the South Korean Economic Development Cooperation Fund (EDCF), the package was made and had 1 billion dollars as a government to government funding. as export credit from KEXIM so 9 billion dollars were offered. As a formal agreement, The credit of 9 billion dollars from KEXIM was supposed to happen which has to be signed in between KEXIM and EXIM Bank.