India’s economic ‘Modification’ still not delivering on ECA finance

(TFX News, London, 25 January 2016) India’s election in 2014 of business-friendly Prime Minister Narendra Modi, along with his promises of a capex boom, triggered a rush of optimism that ECA finance would finally take off. The rout in global commodity prices that started less than two months later sent those hopes into tailspin, although India’s potential as a vibrant ECA market could yet be fulfilled once oil prices recover. While smaller ECA transactions take place “here and there” in India, the country is not, considering its size, a big player in ECA finance, says Manuel Probst, director of export finance at German industrial services provider Ferrostaal.