Indian Prime Minister Narendra Modi on Sunday announced a $1 billion line of credit to Mongolia in addition to upgrading the relationship of the two countries from comprehensive to “strategic partnership”.
India will provide Mongolia with a $1 billion line of credit to help the nation fund railway, power, and other infrastructure projects, a much-needed boost for the east-central Asian nation as it struggles with its slowing economy.
“I am pleased to announce that India will provide a Line of Credit of $1 billion to support expansion of Mongolia’s economic capacity and infrastructure,” Modi said.
“In a reflection of our commitment to further deepen our relationship, we have decided to upgrade our comprehensive partnership to ‘strategic partnership’,” Modi said on Sunday during a joint press conference with his Mongolian counterpart.
Narendra Modi, the first Indian Prime Minister to visit Mongolia, held wide ranging talks with his counterpart Chimed Saikhanbileg following which both sides inked 14 agreements in fields such as defence, cyber security, agriculture, renewable energy, and health sector.
Mongolia has been looking for ways to finance and broaden its network of road and rail corridors in an effort to boost mineral exports to China and abroad.
Mongolia’s economic growth has tumbled from a world-beating 17.3 percent in 2011 to 7.8 percent in 2014 amid a flight of foreign investment and fall in commodity prices.