In 2016, a new credit arrangement of US $500 million was made for the purchase of defence equipment under the Indian Constitution. With which country was this agreement signed?

Correct option is D

The correct answer is (d) Vietnam
Explanation:
• In September 2016, India and Vietnam signed an agreement for a new Line of Credit (LoC) worth US $500 million.
• This agreement was intended for the purchase of defence equipment and to strengthen the strategic partnership between the two nations.
• The announcement was made during Prime Minister Narendra Modi's visit to Vietnam, the first by an Indian PM in 15 years.
• This credit line was aimed at enhancing maritime security and military cooperation in the Indo-Pacific region.
• Earlier, India had provided a $100 million credit line to Vietnam for the procurement of high-speed offshore patrol boats.
Information Booster:
• India and Vietnam upgraded their relationship to a "Comprehensive Strategic Partnership" during this 2016 visit.
• The defence cooperation includes training, capacity building, and joint exercises between the two armed forces.
Additional Knowledge: (a) Nepal (Option a)
• While India provides significant development aid to Nepal, this specific $500 million defence credit arrangement in 2016 was not with Nepal.
(b) Bhutan (Option b)
• India is Bhutan's largest development partner, but the 2016 defence credit agreement was focused on Southeast Asian maritime strategy.
(c) Bangladesh (Option c)
• India did announce a $500 million line of credit for defence to Bangladesh, but this occurred later, in 2017, during PM Sheikh Hasina's visit to India.