Prime Minister Narendra Modi not only extended a $1 billion credit line to develop Mongolia’s infrastructure, but also enhanced their bilateral ties to a strategic partnership on Sunday.
The credit line will be used to fund a railway and other infrastructure projects in an attempt to boost the country’s lethargic economy which has declined from 17.3 percent in 2011 to 7.8 percent in 2014 due to a halt in foreign investments fall in commodity prices.
Mongolia is currently seeking measures to finance and broaden its pathways to China and other countries in order to increase its exports. Additionally, the country is looking into developing coal fired power plants and wind farms to diminish energy reliance on Russia.
Mondi, the first Indian Prime Minister to visit Mongolia, held a wide range of discussions with Saikhanbileg where they settled 14 agreements on defence, cyber security, agriculture, renewable energy and health sector.
"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," said Modi.
After taking their economic partnership to a whole new level, Mondi stated that both countries will play a great role in the future of the Asia-Pacific region.
“We can work together to advance peace, stability and prosperity in the region,” said Modi.