by The EXIM Bank is a specialized financial institution that provides financial assistance and support to Indian exporters and importers. The bank offers various financing products, including export credit, overseas investment finance, and lines of credit to foreign governments and banks. It also provides advisory and information services to Indian companies looking to expand their international business.
The Export-Import Bank of India (EXIM Bank) was established on January 1, 1982, by an Act of Parliament to enhance and promote India’s international trade. The bank is a specialized financial institution that provides financial assistance and support to Indian exporters and importers.
The idea of setting up an export-import bank in India was first proposed by the Reserve Bank of India in the late 1950s. However, it was not until the 1970s that the government of India decided to establish such an institution. In 1975, a committee headed by R.N. Malhotra was set up to study the feasibility of setting up an export-import bank in India. The committee recommended the establishment of such a bank, and the Export-Import Bank of India was finally established in 1982.
Initially, the EXIM Bank was set up with a capital base of Rs. 100 crore, which was subscribed to by the Reserve Bank of India, the Government of India, and public sector banks. Over the years, the bank’s capital has been increased several times, and it currently has a paid-up capital of Rs. 10,000 crore.
Since its establishment, the EXIM Bank has played a critical role in promoting and supporting India’s international trade. The bank has provided financial assistance and support to Indian companies engaged in exporting goods and services and importing goods and services from other countries. It has also provided financial assistance to Indian companies investing in overseas ventures.
In addition to providing financial assistance, the EXIM Bank has also played an important role in promoting economic cooperation between India and other countries. The bank has provided lines of credit to foreign governments and other entities for the import of Indian goods and services. It has also provided advisory and information services to Indian companies on various aspects of international trade.
Objectives:
- To enhance and support India’s international trade by providing financial assistance to Indian exporters and importers.
- To facilitate cross-border investments and promote economic cooperation between India and other countries.
- To promote the development of export-oriented industries in India.
Functions:
- Export Credit: The EXIM Bank provides export credit to Indian companies engaged in exporting goods and services. It offers various financing products, including pre-shipment credit, post-shipment credit, and export lines of credit. These credit facilities help Indian exporters to finance their working capital requirements, purchase raw materials, and expand their production capacity.
- Import Finance: The EXIM Bank also provides import finance to Indian companies engaged in importing goods and services. It offers various financing products, including import lines of credit, buyer’s credit, and supplier’s credit. These credit facilities help Indian importers to finance their import transactions and manage their cash flow.
- Overseas Investment Finance: The EXIM Bank provides financial assistance to Indian companies investing in overseas ventures. It offers various financing products, including project finance, equity participation, and loans for acquisition of overseas companies. These financing options help Indian companies to expand their global presence and diversify their business.
- Lines of Credit: The EXIM Bank also provides lines of credit to foreign governments, banks, and other entities for the import of Indian goods and services. These lines of credit help to promote India’s exports and facilitate economic cooperation between India and other countries.
- Advisory and Information Services: The EXIM Bank provides advisory and information services to Indian companies on various aspects of international trade, including market research, trade finance, and risk management. It also offers training programs and seminars to help Indian companies develop their export capabilities and expand their business globally.
