Use DCA to enhance India's strategic and commercial interests:FM

New Delhi, June 20 (UNI) Presiding over a confident economy, Finance Minister P Chidambaram today advocated the use of instrument of Development Cooperation Assistance (DCA) by India to enhance her strategic and commercial interests.

India should engage with many more developing countries and sectors for DCA which would also help poorer nations in their development efforts, he told the parliamentary consultative committee attached to his ministry here today. In this process, people of Indian origin living in recepient countries would also get the benefit of DCA, he added.

Referring to India's growing stature in international affairs, the minister also advocated increase in aid to poor countries, adding he had proposed in 2007-08 budget the establishment of India International Development Cooperation Agency in which Ministries of External Affairs, Commerce and Finance could be partners to achieving the objective of enhancing the country's strategic and commercial interests.

Describing DCA an emerging, developing and evolving programme under which government provides interest-subsidy to lines of credit (LoC) by Exim bank of India, Mr Chidambaram said this also help Indian companies in promoting export of goods and project exports and thus help in securing goodwill of beneficiary countries.

Indian government has till now supported 67 LoCs worth about 2,772 million dollars through Exim Bank, he informed the members, adding need and capacity of donee countries and recommendation of the External Affairs ministry are taken into account while deciding DCA.

UNI