EXIM Bank

The Export-Import Bank of India, commonly known as EXIM Bank, was established in 1982 by the Government of India. Its primary objective is to promote international trade and investment by providing financial assistance to Indian exporters and importers. EXIM Bank plays a critical role in the Indian economy by providing a range of financial services to exporters and importers.

Role and Functions of EXIM Bank: #

The primary role of EXIM Bank is to facilitate and promote India’s international trade. The bank provides financial assistance to Indian exporters and importers to help them grow their business and explore new markets. The bank offers a wide range of financial products and services, including export credit, project finance, export marketing, export advisory, and export risk management.

The bank also supports Indian companies in their overseas investments and acquisitions, providing them with financial and advisory services. It also works closely with other financial institutions, including commercial banks, to promote trade finance and develop the country’s trade infrastructure.

EXIM Bank operates as a government-owned financial institution that provides financial assistance to Indian exporters and importers. Its primary functions include:

• Export Finance: EXIM Bank provides pre-shipment and post-shipment finance to Indian exporters. This finance is offered in different forms, such as export credit, working capital finance, and guarantee facilities to support the export of goods and services.
• Import Finance: EXIM Bank also provides finance to Indian importers for the import of capital goods, raw materials, and other inputs required for the production of goods and services. This finance is offered in the form of letters of credit, guarantees, and other forms of credit facilities.
• Project Finance: EXIM Bank provides project finance to Indian companies for setting up new projects or expanding existing ones. This finance is primarily offered to companies engaged in infrastructure development, power generation, and other core sectors of the economy.
• Overseas Investment: EXIM Bank also provides financial assistance to Indian companies investing overseas. This assistance is offered in the form of loans, guarantees, and equity participation.
• Research and Development: EXIM Bank conducts research and analysis on international trade and investment. It also provides advisory services to Indian companies on international trade-related matters.

Role of EXIM Bank in Exports: #

EXIM Bank plays a crucial role in promoting India’s exports. It offers export credit facilities to Indian exporters, providing them with finance to produce goods and services for export. The bank also offers pre-shipment finance, post-shipment finance, and export finance in foreign currency to support exporters in their business.

The bank also provides advisory services to Indian exporters, helping them to identify potential markets and opportunities, understand market trends, and develop effective export strategies. It also provides information on foreign trade policies and regulations, helping exporters to navigate the complexities of international trade.

EXIM Bank plays a critical role in promoting exports from India. It provides financial assistance to Indian exporters in the form of pre-shipment and post-shipment finance, working capital finance, and guarantee facilities. This assistance helps Indian exporters compete in the global market by providing them with the necessary funds to produce and ship their products.

EXIM Bank also plays a critical role in promoting exports by providing marketing and promotional support to Indian exporters. It organizes trade fairs and exhibitions in India and overseas to showcase Indian products and services. It also conducts market research and analysis to identify new export markets for Indian products.

Schemes and Services offered by EXIM Bank: #

1. Line of Credit: EXIM Bank provides a line of credit to Indian companies for the import of capital goods and services from overseas. This credit is offered to companies engaged in infrastructure development, power generation, and other core sectors of the economy.
2. Buyer’s Credit: EXIM Bank provides buyer’s credit to foreign buyers of Indian goods and services. This credit is offered to foreign buyers at competitive rates and helps Indian exporters compete in the global market.
3. Export Credit: EXIM Bank provides export credit to Indian exporters in the form of pre-shipment and post-shipment finance, working capital finance, and guarantee facilities.
4. Project Finance: EXIM Bank provides project finance to Indian companies for setting up new projects or expanding existing ones. This finance is primarily offered to companies engaged in infrastructure development, power generation, and other core sectors of the economy.
5. Advisory Services: EXIM Bank provides advisory services to Indian companies on international trade-related matters. It also conducts market research and analysis to identify new export markets for Indian products.

Conclusion: #

EXIM Bank plays a critical role in promoting international trade and investment in India. Its financial assistance to Indian exporters and importers helps them compete in the global market. Its schemes and services are designed to support Indian companies engaged in infrastructure development, power generation, and other core sectors of the economy. EXIM Bank’s role in promoting exports from India is critical, and its efforts have helped Indian companies expand their global footprint.