Fred P. Hochberg, the chairman and president of the Export-Import
Bank of the United States (Ex-Im Bank), traveled to India last week on a
business-development mission. While in India, the Chairman signed a
$500 million Memorandum of Understanding (MoU) with ICICI Bank pledging
cooperation on financing projects beneficial to both India and the
United States. Up to $500 million in new transactions could be financed
as a result of the initiative.
This News comes at a time U.S. has filled a dispute against India on grounds on certain measures of India
relating to domestic content requirements under the Jawaharlal Nehru
National Solar Mission (NSM) for solar cells and solar modules (Link). ICICI Bank is India's largest
private sector Bank and this MoU will support the financing of U.S.
goods and services by ICICI Bank's customers. Ex-Im and ICICI Bank see
specific opportunities in air traffic control and infrastructure;
railway; urban metro and port development projects; power generation,
including renewable energy; oil and gas projects; and water treatment
projects.
In Mumbai, Hochberg also met with local officials and
identified new business opportunities for U.S. exporters in the power,
energy, and manufacturing sectors. He also met with several leading
business organizations, including members from the U.S.-India Importers
Council and the Confederation of Indian Industry.
“India is an
emerging market that provides enormous opportunities for U.S.
companies,” said Ex-Im Bank Chairman Fred P. Hochberg. “This $500
million MoU represents a partnership between our two countries and will
help ensure that American companies and workers help India meet its
growing infrastructure needs, while creating jobs here at home."
Speaking
on the occasion, Chanda Kochhar, MD & CEO, ICICI Bank said, "ICICI
Bank is pleased to be working with the U.S. Ex-Im Bank towards the
growth of India-US trade. This MoU combines the strengths and expertise
of both our institutions, helping U.S. Ex-Im to leverage ICICI Bank's
strong corporate relationships and project finance capabilities, and
ICICI Bank to offer diverse funding options to its clients".
Ex-Im
Bank’s authorizations in India continue to increase dramatically,
bringing the Bank’s total exposure to India to $8.5 billion as of the
end of the first quarter in FY 2013. India is currently the Bank’s
second largest market in terms of overall exposure. Last year, US Ex-Im
Bank financed 17 percent of all U.S. exports to India.
India is
one of nine key markets where Ex-Im Bank is focusing its
business-development efforts because of the country's infrastructure and
development needs.
