Adani row may test resilience of project exports from India

The Kenyan government's decision to scrap multi-million-dollar airport expansion and energy deals with the Adani group, following bribery allegations by the US, could test the resilience of India's fledgling project exports market.

- ASIT RANJAN MISHRA

"This will increase technical scrutiny for project exporters from India in the host countries, including for projects funded by multilateral agencies," an official at a multilateral lending agency said, requesting anonymity.

The export of engineering goods on deferred payment terms, execution of turnkey projects, and civil construction contracts abroad are collectively referred to as 'project exports'. With growing impetus for infrastructure projects across most developing countries and multilateral financial institutions scaling up investments in various infrastructure segments, the scale of opportunities in project exports is growing rapidly.

The Union government's support to developing partner countries through the lines of credit (LOC) programme also helps create mutually beneficial partnerships with other developing countries and creates opportunities for Indian companies.