The Bank offers a wide range of lending and service programmes to assist Indian companies at all stages of the business cycle. Through import of technology, capital, goods and raw materials, the Bank facilitates the upgradation of technology and capabilities of Indian companies to enable them to enhance their competitiveness. The broad array of support programmes offered by the Bank for product development, production marketing, as also preshipment and postshipment ,enables Indian companies to add value resulting in exports of products, capital goods, services. The Bank has also been instrumental in promoting ventures overseas in the fields of manufacturing, assembly, marketing and trading.
Implications of Foreign Trade Policy and Facilitation of Foreign Trade A Presentation S.R.Rao Chief General Manager Export-Import Bank of India
Established “for providing financial assistance to exporters and importers, and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country’s international trade…”
Eligible items – all items permissible under Exim Policy
AFRICA ASIA EUROPE ALGERIA PTA BANK covering BANGLADESH GHANA BURUNDI INDONESIA KAZAKHSTAN KENYA COMOROS IRAN , IRAQ BULGARIA MALAWI DJIBOUTI SRI LANKA RUSSIA MAURITIUS ERITREA, EGYPT KOREA ROMANIA NAMIBIA ETHIOPIA MALAYSIA HUNGARY SEYCHELLES KENYA THAILAND POLAND SOUTH AFRICA MALAWI VIETNAM SUDAN MAURITIUS PHILIPPINES TANZANIA RWANDA TUNISIA SOMALIA UGANDA SUDAN LATIN AMERICA & CARIB. ZAMBIA TANZANIA UGANDA BRAZIL MEXICO COLOMBIA BOAD covering ZAMBIA JAMAICA VENEZUELA BENIN ZIMBABWE BURKINA FASO CAF covering BCIE covering COTE D’IVOIRE BOLIVIA COSTA RICA MALI EADB covering COLOMBIA EL SALVADOR NIGER KENYA ECUADOR GUATEMALA SENEGAL TANZANIA PERU HONDURAS TOGO UGANDA VENEZUELA NICARAGUA LOCs Extended by Exim Bank
Simplifying procedures and bringing down transaction costs
Transaction costs are incurred at the pre and post-production stages, and arise out from several procedural complexities associated with administrative processes, availability of finance and transportation problems.
For enhancing the growth of exports it is important to reduce the transaction costs involved.
Exim Bank Study on Transaction Costs of Indian Exports
Foreign Trade Policy 2004-09 Findings of Exim Bank’s Study Sector No. of Firms Transaction costs as % of export revenue (2003 Survey) Transaction costs as % of export revenue (1998 Survey) Textile/Garments 23 3-10 15 Engineering goods 18 < 5 10 Pharmaceuticals 9 8 10 Chemicals 7 < 5 14 Computer software 9 1-5 10 Agro-Industries 2 1-2 7-8.5 Electronic & Electrical machinery 3 5 - Plastic components 2 5-10 - Paper Industry 2 5-7 - Others 7 1-2
Will further boost exports from the successful exporters
Vishesh Krishi Upaj Yojana to boost horticulture exports
Global trade in horticulture: US$ 79 bn (1999)
India’s exports: US$ Rs. 1830 cr (1999-2000)
S uccess of AEZs for horticulture depend on “ the ability of the states to overcome existing shortcomings in infrastructure, institutional mechanism and policy and programme support to achieve desired export orientation ”
EOUs permitted to retain 100% of export earnings in EEFC accounts
Income tax benefits to DTA units which convert to EOUs
All these should considerably increase export growth from the EOUs
Exim Bank: Financing of Export-Oriented Companies Software Training Institutes Minor Ports Technology Parks EOU Projects & TUFS Term Loans Project Finance Equipment Finance Working Capital Overseas Investment Finance Long Term upto 5 years Term Loans for 1-2 years Loans to Indian companies for Equity Investment in their ventures overseas Loans to Indian companies to olden to their overseas ventures Other Programmes Export Marketing Finance Export Product Development Finance for R&D Short Term < 1 year Direct Equity stake