In April 2025, India launched a strategic initiative to boost its defence exports by offering low-cost loans to countries traditionally reliant on Russian arms. Which Indian institution is primarily responsible for facilitating these loans?​

Correct option is D

The correct answer is (d) Export-Import Bank of India (EXIM Bank)

• India’s initiative aims to boost defence exports by providing low-cost loans to countries that have traditionally depended on Russian arms.

• The primary institution facilitating these loans is the Export-Import Bank of India (EXIM Bank), which specializes in providing financial products to support India’s export activities.

• The EXIM Bank will offer lines of credit to help these countries purchase Indian-made defence equipment, which is often more affordable than Western alternatives.

• This initiative is part of India's strategy to increase its defence exports and reduce dependency on foreign suppliers, aiming to build a self-reliant defence sector.

Information Booster:

• EXIM Bank's Role and Establishment:

• Export-Import Bank of India (EXIM Bank) was established in 1982 as a specialized financial institution that focuses on supporting India's international trade.

• Its core mandate is to finance and facilitate the export of Indian goods and services, particularly to developing nations that need affordable financing options for strategic purchases like defence equipment.

• India's Defence Export Strategy:

• India has set a goal of increasing its defence exports to $6 billion by 2029, up from about $3.5 billion in 2022.

• The target markets include African, Southeast Asian, and South American countries that are traditionally dependent on Russian military equipment.

• India’s affordable defence technology offers an attractive alternative to countries looking to diversify their sources of arms.

• Significance of Low-Cost Loans:

• The low-cost loans will make it easier for countries with budget constraints to procure Indian defence equipment such as artillery shells, howitzers, and small arms.

• This initiative will not only enhance India’s strategic ties with these nations but also promote India’s “Atmanirbhar Bharat” (self-reliant India) vision.