India's Capacity Building & Development Assistance: ITEC & Lines of Credit - International Relations | UPSC Learning
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India's Capacity Building & Development Assistance: ITEC & Lines of Credit
Medium⏱️ 5 min read
international relations
📖 Introduction
<h4>India's Development Partnership Philosophy</h4><p>India's approach to development partnership places a strong emphasis on <strong>Capacity Building</strong> and <strong>Technical Assistance</strong>. This strategy is central to fostering stronger ties with friendly nations.</p><p>The assistance provided includes various forms of support, tailored to the specific needs of partner countries. This comprehensive approach aims to empower nations through skill development and knowledge transfer.</p><div class='key-point-box'><p>India's development partnership prioritises:</p><ul><li><strong>Civilian and Military Training</strong>: Providing essential skills across various sectors.</li><li><strong>On-site Programs</strong>: Implementing training and development initiatives directly in partner countries.</li><li><strong>Expert Deputation</strong>: Sending Indian specialists to offer guidance and support.</li></ul></div><h4>The Indian Technical and Economic Cooperation (ITEC) Program</h4><p>The <strong>Indian Technical and Economic Cooperation (ITEC) Program</strong> is a flagship initiative launched by India. It serves as a crucial instrument for delivering technical assistance globally.</p><p>Established in <strong>1964</strong>, the ITEC Program has significantly expanded its reach, now encompassing <strong>160 partner countries</strong>. It offers short-term training opportunities across a wide array of disciplines.</p><div class='info-box'><p><strong>ITEC Program Growth:</strong></p><ul><li><strong>Initiated:</strong> 1964</li><li><strong>Partner Countries:</strong> 160</li><li><strong>Training Slots (2019-20):</strong> Grew from 4,000 to 14,000 annually.</li></ul></div><p>The courses offered under ITEC are diverse, addressing critical areas of global development. They contribute to holistic skill enhancement and human resource development.</p><div class='info-box'><p><strong>Key ITEC Course Areas:</strong></p><ul><li><strong>Engineering</strong></li><li><strong>Climate Change</strong></li><li><strong>Health</strong></li><li><strong>Women Empowerment</strong></li><li>And many other disciplines, fostering comprehensive skill development.</li></ul></div><div class='exam-tip-box'><p>The <strong>ITEC Program</strong> is a prime example of India's <strong>soft power diplomacy</strong> and its commitment to <strong>South-South Cooperation</strong>. Mentioning its growth and diverse offerings can fetch marks in <strong>GS Paper II (International Relations)</strong>.</p></div><h4>Lines of Credit (LOCs) for Development Projects</h4><p>India extends development assistance through <strong>concessional Lines of Credit (LOCs)</strong>. These financial instruments are crucial for supporting large-scale development projects in partner nations.</p><p>The LOCs are provided under the <strong>Indian Development and Economic Assistance Scheme (IDEAS)</strong>. The <strong>Exim Bank of India</strong> acts as the implementing agency for these financial arrangements.</p><div class='info-box'><p><strong>LOCs at a Glance:</strong></p><ul><li><strong>Total LOCs Extended:</strong> 306</li><li><strong>Total Value:</strong> USD 30.59 billion</li><li><strong>Recipient Countries:</strong> 65</li><li><strong>Implementing Agency:</strong> Exim Bank of India (under IDEAS)</li></ul></div><p>Projects funded through these LOCs cover a broad spectrum of critical infrastructure and development sectors. This ensures a holistic impact on the socio-economic landscape of recipient countries.</p><div class='info-box'><p><strong>Sectors Covered by LOC Projects:</strong></p><ul><li><strong>Transport</strong>: Roads, railways, ports.</li><li><strong>Power Generation</strong>: Energy infrastructure development.</li><li><strong>Agriculture</strong>: Modernization and productivity enhancement.</li><li><strong>Manufacturing Industries</strong>: Boosting industrial growth.</li><li><strong>Healthcare</strong>: Improving medical facilities and services.</li><li><strong>Education and Capacity Building</strong>: Strengthening human capital.</li></ul></div><div class='exam-tip-box'><p>Understanding <strong>Lines of Credit</strong> and their strategic deployment under <strong>IDEAS</strong> is vital for analyzing India's economic diplomacy. It highlights India's role as a reliable development partner in the global South.</p></div>

💡 Key Takeaways
- •India prioritizes Capacity Building and Technical Assistance in its development partnerships.
- •The ITEC Program (1964) offers training to 160 countries in diverse fields like engineering and health.
- •ITEC significantly expanded, reaching 14,000 training slots by 2019-20.
- •Concessional Lines of Credit (LOCs) are extended under IDEAS via Exim Bank of India.
- •306 LOCs worth USD 30.59 billion have supported 65 countries in critical sectors like infrastructure and agriculture.
- •These initiatives bolster India's soft power, economic diplomacy, and commitment to South-South Cooperation.
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