India opens $1 billion line of credit to Mongolia


ULAN BATOR/ MONGOLIA: The Prime Minister of India Narendra Modi today announced that India will open a $1 billion credit line to bolster Mongolia’s economic capacity and infrastructure. Modi, the first Indian Prime Minister to visit Mongolia, held bilateral talks with his counterpart Chimed Saikhanbileg. The two countries inked 14 agreements to set up a cyber security training centre in the Mongolian defence ministry, a MoU in the field of new and renewable energy, and for setting up an India-Mongolia Friendship Secondary School in Mongolia.  

“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,” Prime Minister Modi said at a joint press interaction with Saikhanbileg at State Palace. “We can work together to help advance peace, stability and prosperity in this region,” Modi said. “In a reflection of our commitment to further deepen our relationship, we have decided to upgrade our Comprehensive Partnership to ‘Strategic Partnership’,” he said. “As the Indian economy adds strength to our region and the world, it will also benefit Mongolia,” he said. Prime Minister Modi said he hoped his visit would bring closer economic relations that could lead to cooperation in Mongolia’s minerals sector. India has no investments in Mongolia’s mines, although Indian companies have expressed interest in its coal. “The agreements that we have just signed speak to the depth of the relationship. These cover economic relations, development partnership, defence and security, and people-to-people contacts,” the Prime Minister added. Modi said the cooperation between National Security Councils of the two countries will provide a strategic framework for cooperation. India will also help establish a cyber security centre in Mongolia’s defence and security establishment. Both sides inked an air services agreement and on the transfer of sentenced prisoners. Before Ulan Bator, Modi visited the Chinese cities of Shanghai and Beijing. He is next scheduled to go to South Korea.

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