CHAPTER 1

INTRODUCTION

INTRODUCTION

Export-Import Bank of India is the premier export finance institution of the country, set up in 1982 under the Export-Import Bank of India Act 1981. Government of India launched the institution with a mandate, not just to enhance exports from India, but to integrate the country¶s foreign trade and investment with the overall economic growth. Since its inception, Exim Bank of India has been both a catalyst and a key player in the promotion of cross border trade and investment. Commencing operations as a purveyor of export credit, like other Export Credit Agencies in the world, Exim Bank of India has, over the period, evolved into an institution that plays a major role in partnering Indian industries, particularly the Small and Medium Enterprises, in their
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globalization efforts, through a wide range of products and services offered at all stages of the business cycle, starting from import of technology and export product development to export production, export marketing, pre -shipment and post-shipment and overseas investment.

a.

The foreign trade policy for the year 2009-2014 was announced on 27th august 2009 at a time when the world was emerging from the shadow of challenging economic period, the worst India has seen in the last 7 decades.

b. The key objective for the foreign trade policy was to arrest the declining exports and reserve the trend. c. Labour intensive sectors are being given special attention and the policy parameters have been crafted to enhance the

competitiveness of the exports by supporting up graduation in technologies.

1.1 ORIGIN
The Export-Import Bank Act, 1981

An act to establish a corporation to be known as the Export -Import Bank of India for providing financial assistance to exporters and importers, and for functioning as the principal financial institution for coordinating the working of financial institutions engaged in financing the export and import of goods and services with a view to promoting the country¶s international trade and for matters connected therewith and incidental to.
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1.2HIST TY

Thi Act extends t the whole of Indi

With effect from the date

i e. September 1981, as the Central Government by notification, appointed, a corporation Known as the Export Import Bank of India was established for the purposes of this Act. The Export Import Bank of India, commonly known as the EXIM Bank, commenced operations in March 1982. It was set up so as to take over the operations relating to export finance which the IDBI (Industrial Development Bank of India) had been handling since the year 1970. Exim Bank acts as the apex financial institution relating to financing for foreign trade. It provides financial assistance by way of direct loans and advances for the purpose of export or import, rediscounting of usance export bills for banks and finance for international trade activities.

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and by 2014 there is expectations of India¶s exports of goods and services getting doubled.5 OBJECTIVE The objective of the bank is³« for providing financial assistance to exporters and importers.4 MISSION  Exim Banks mission is to facilitate globalization of Indian Business. India should be able to come back on the high export growth trajectory of 25% per annum.´ 1.1. 1. through a diverse range of products and services.3 THE INSTITUTION Policy announcements which are made this year. will help achieving export target of US$ 200 billion in the fiscal year 2010 -11 and over the remaining 3 years of policy.  Exim Banks mission statement: ³To develop commercially viable relationships with externally oriented companies by supporting their internationalization efforts. 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«´ ³« shall act on business principles with due regard to public interest´ as Stated In the Export-Import Bank Act. y The primary objective of EXIM bank is to develop commercially viable relationships with a largest set of externally oriented 4 .1981.

and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing exports and imports of goods and services with a view to promoting country¶s international trade. consultant and promoter. a source of finance. y EXIM bank was set up for providing financial assistance to exporters and importers. 5 . y Exim bank plays four prolonged pole with regard to India¶s foreign trade: those of coordinator. aimed at enhancing their internationalization efforts.companies by offering them a comprehensive range of products and services.

hyderabad. pune Overseas offices: Budapest. Singapure. new Delhi.1. mumbai. London.6 EXIM BANK ACT y Completed 23 years of operations in march 2005 y Set up by an act of parliament in September 1981 y Commenced operations in march 1982 y Wholly owned by government of India y Export import bank of India was set up for the purpose of financing. Johannesburg. facilitating and promoting foreign trade in India. 1. y Exim is the principal financial institution in the country for coordinating working for institution engaged in financial exports and imports. kolkota. banglore. Woshington DC 6 .7 OFFICES Head office : Mumbai Domestic offices : Ahemdabad. guwahati. chennai.

and thereby minimize response time and maximize customer equity. the Banks seeks to develop its human resource by motivating them through challenging assignments. particularly those funded b y Multilateral Funding Agencies like the World Bank. The Banks believes that its people are its key resource.8 CORPORATE PHILOSOPH Exim banks corporate philosophy is built on two pillars: People orientation and customer focus. The Bank provides Indian project exporters with a comprehensive range of services to enhance the prospect of their securing export contracts. processes and delivery mechanisms. 1. Therefore. Asian Development Bank. y The Bank extends lines of credit to overseas financial institutions. Our interactive mode of analysis and decision -making. foreign governments and their agencies. through multi disciplinary cross-functional groups ensures that the best possible business solution is offered to the customer. The Bank constantly seeks to innovate and improve its products. enabling them to finance imports of goods and services from India on deferred credit terms. and recognizing professional excellence. Customer-responsiveness is germane to the Banks philosophy. upgrading their skills through training programmes. African Development Bank and European Bank for Reconstruction and Development. The 7 .1.9 THE INITIATIVES y Exim Bank of India has been the prime mover in encouraging project exports from India.

y The facilities include loan to Indian companies for equity participation in overseas ventures. y The Bank has launched the Rural Initiatives Programme with the objective of linking Indian rural industry to the global market. advisory and support services.Bank¶s Overseas Investment Finance programmers offers a variety of facilities for Indian investments and acquisitions overseas. y The Bank provides financial assistance by way of term loans in Indian rupees/foreign currencies for setting up new production facility. direct equity participation by Exim Bank in the overseas venture and non-funded facilities such as letters of credit and guarantees to facilitate local borrowings by the overseas ven ture. The service is provided on success fee basis. expansion/modernization/up gradation of existing facilities and for acquisition of production equipment/technolog y. y In order to assist the Small and Medium Enterprises. y Exim Bank supplements its financing programmes with a wide range of value-added information. which enable exporters to evaluate international risks. The programme is intended to benefit rural poor through creation of export capability in rural enterprises. thereby helping them in their globalization efforts. the Bank has put in place the Export Marketing Services (EMS) Programme. exploit export opportunities and improve competitiveness. 8 .

Bank received share capital of Rs. 2006. As on March 31.1. y Market borrowings as on March 31. 950 crore as on March 31. 4384 crore and foreign currency resources of US$ 785 mn equivalent. y During the year. CRISIL and ICRA. 7886 crore comprising Rupee resources of Rs. outstanding Rupee borrowings including bonds and commercial paper amounted to Rs. 100 crore from the Government of India. 2006. 11825 crore. 2006 constituted 80% of the total resources. 9 . y The Bank's domestic debt instruments continued to enjoy the highest rating viz. 'AAA' from the rating agencies. Bank's paid-up capital increased to Rs.10 RESOURCES/TREASUR y Bank raised borrowings of varying maturities aggregating to Rs.

reserve bank of India. And commercial banks that are authori ed foreign exchange dealers. commerce. Now we will see how Exim bank work as an organi ation: 10 .Exim bank is the coordinator of the working group mechanism for clearance of project and services exports and deferred payment exports(for amounts above a certain value currently US$100 million). external affairs). The working group comprises exim bank.CHAPTE 2 THE ORGANISATION . export credit guarantee corporation of India ltd. government of India representatives(ministries of finance.

forfeiting. 11 . guarantees. Export Oriented Units (EOUs). Export Credit Guarantee Corporation of India. the bank has nine regional offices overseas. importers. With its headquarters in Mumbai.lines of credit (LOC) is a financing mechanism that provides a safe mode of non ±recourse financing option to Indian exporters. finance for export of projects and consultancy services. which has high level representatives from the Government.The group handles credit proposals from SMEs under various leading programmes of the bank. Reserve Bank of India. and investment by Indian companies. especially to SMEs. Export services group offers a variety of advisory and value.  Corporate banking group which handles a variety of financing programmes for.  Project finance/trade finance group which handles the entire range of export credit services such as suppliers credit.1 ORGANISATIONAL SET-UP Exim bank is managed by a Board of Directors. The banks functions are segmented into several operating groups including. academia and business community.2.added information services aimed at trade an investment promotion.  Lines of credit group . public sector Banks. pre -shipment credit. which has been put in place to spearhead the initiative to promote and support Agri ±exports  Small and medium enterprises group has been established to cater to the specific financing requirements of export oriented SMEs.  Agri business group. and serves and an effective market entry tool. buyers credit.

without recourse to them. 2. which states that the contract is covered under exim banks loc to the borrower and reimbursement will be exim bank for t he eligible value of credit. regional development banks. designed as the negotiating bank. when the agreement becomes ef fective. negotiates shipping documents and pays the exporter. 5. to import goods and services from India on defferd credit terms. How does it work? 1. 6. by debit to the LOC account of the borrower. if satisfied approves the contract and refers to exim bank for concurrence for inclusion of contract for being financed under the LOC. if in conformity with the terms of LOC. 12 . to enable buyers in those countries. Exporter executes the contract/ ships the goods/ provider services. on receipt of valid claim and service fees. The importer arranges remittance of advance payment to the exporter and also opening of a letter of credit. Commercial bank in India. Importer approaches the borrower for approval of the contract. Exim bank reimburses the negotiating bank. 3. sovereign government and other entities overseas. The borrower appraises the proposal. 8. and serves as an effective market entry tool.2:EXIM LINES OF CREDIT INTRODUCTION Exim bank extends lines of credit (LOCs) to overseas financial institutions.2. available amount under LOC and quantum of service fee payable to exim bank and negotiates contract with exporter. Exim bank accords approval to the contract. The Indian exporters can obtain payment of eligible value of exim bank. Borrower pays exim bank on due dates. Exim bank conveys contract approval to the exporter and borrower. Exim bank signs LOC agreement with overseas borrower institutions (borrower) and announces the availability of LOC for utilization. 9. 4. 7. against negotiation of shipping document. Exporter checks with exim bank. especially to SMEs. LOC is the financing mechanism that provides a safe mode of non recourse financing option to Indian exporters .

shares. and 6) Provide technical administrative and financial assistance to parties in connection with export and import.2. 13 . 5) Undertake limited merchant banking functions such as underwriting of stocks. 3) Financing of joint ventures in foreign countries. 4) Providing loans to Indian parties to enable them to contribute to the share capital of joint ventures in foreign countries. bonds or debentures of companies engaged in export or import. 2) Financing of exports and imports of machinery and equipment on lease basis.3 EVOLVING VISION FUNCTIONS: 1) Financing of exports and imports of goods and services. not only of India but also of third world countries.

2. 256 new products added under FPS (at 8 digit level). Higher support to market and product diversification y Additional benefits of 2% bonus over and above the existing benefits of 5%/2% under focus product scheme. y Nearly three digit products (at 8 digit level) from the readymade garment sector incentivized under MLFPS for further 6 months from October 2010 to march 2011 for exports to 27 EU countries. allowed for around 135 existing products which have suffered due to recession in exports. marine y Electronics and IT hardware electronics machinery manufacturing industries y Green product y Export of products from north East y Sports goods and toys sector 1. 14 .4 THE MAIN FOCUS OF THE EXIM BANK IS ON y Market diversification y Technological up gradation y Support to status holders y Agriculture y Handlooms y Handicraft y Germs and jewelry y Lather. which shall be entitled for benefits @ 2% of FOB value of exports to all markets.

Plywood and allied products. y Advance Authorization for Annual Requirement shall also be exempted from payment of anti -dumping & Safeguard duty in line with the underlying principle that goods and services should be exported and not the taxes and levies.2011. glass & glassware.3.12. rubber & articles thereof. 4. sports goods and toys and additional engineering products. ceramic products.2010 till 30. To support them to upgrade their technology. Support to technological up gradationy Zero duty EPCG scheme. marine products.2011.The benefit of the scheme has been expanded to cover paper & paperboard and articles thereof.06. has been extended by one more year till 31.3. Benefit and flexibility to Status Holdersy Status Holders contribute to a substantial part of our exports.2012.2011. refractory¶s. 15 . 3. 1% Status Holder Incentive Scheme (SHIS) introduced in August 2009 and valid for only two years upto 31. has been extended by one more year for 2011-12 exports.2.3. introduced in August 2009 and valid for only two years up to 31. Stability/Continuity of the Foreign Trade Policyy The popular and exporter friendly Duty Entitlement Passbook (DEPB) scheme has been extended beyond 31.

Agriculture and plantation y Instant Tea and CSNL Cardinol included for benefits under VKGUY @ 5% of FOB value of exports. y Chartered Engineer Certificate for Advance Authorisation on self declared basis has been dispensed with. shall be available on Handloom made -ups exports @ 5% of FOB value of exports. Handlooms y Duty free import of specified trimmings. without the need to file the application for individual capital goods from time to time. rape seed. y Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme would significantly benefit the Handloom Sector. Packed Coconut Water and Coconut Shell worked items shall be entitled for benefits @ 2% of FOB value of exports to all markets under FPS 7. It will reduce transaction time and cost. and groundnut). 16 . embellishments etc. 6. This will reduce documentation and the transaction cost. Oil Meals (Cotton. Castor Oil derivatives. Procedural Simplification and Reduction of Transaction Cost y Exporters shall now have the flexibility to get a high value EPCG authorisation by filing their EPCG application on Annual basis.5.

This will facilitate the logistics for establishment of such warehouses and easy access to raw material for the leather sector . Staple wire. y The list of items allowed for duty free import by Gems &Jewellery 17 . without payment of any export duty.8. 2010 to March. Security censor on card. Gems & Jewellery sector sector has been expanded by Inclusion of additional items such as Tags and labels. It will promote export of products such as micro cloth. This will reduce the cost of the product to some extent. which has become popular in home textiles. Readymade Garment sector granted enhanced support under MLFPS for a period of further 6 months from October. 10. Leather sector y Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi-finished leather from Public bonded warehouses. Poly bag. embellishment etc shall be available @ 3% on exports of polyester made -ups in line with the facility available to sectors li ke Textiles & Leather. Textiles sector y Duty free import of specified trimmings. 9. 2011 for exports to 27 EU countries.

y The facility of duty free import of tools under Duty Free Import y Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme will significantly benefit the Handicrafts and Silk Carpets sectors. LPG Cylinders. Desktops and Notebooks shall now be entitled for benefits @ 2% of FOB value of exports to all markets under FPS instead of their exports to limited market under MLFPS earlier. Ductile Tubes & Pipes shall now be entitled for benefits @ 2% of FOB value of exports to all markets under FPS instead of their exports to specific markets under MLFPS earlier. Semi-conductors. Conductors. 12. Engineering and Electronics:y A number of engineering items namely. Color TVs. Iron & Steel Structures including Transmission Towers and Scaffolding. Machine Tools. which are in the nature of professional equipment. LEDs. y Scrips issued under Served from India Scheme (SFIS) can now be 13. y Telecom Equipments. 18 . Audio Systems. Resistors. Handicraft sector scrips for Handicraft sector shall be made operational. Capacitors. PCBs. Optical Media.11. Service sector used for payment of duty on import of Vehicles. Compressors.

y Benefits under Zero duty EPCG and SHIS schemes will significantly promote technological up gradation of Toys and Sports Goods sectors. with usance not exceeding 90 days.14. execution of export contracts and import transactions. in Indian rupees and foreign currency.5 EXIM BANK FACILITIES y Pre shipment credit exim banks pre shipment credit facility. y For exporters of consultancy and technological services exim bank offers a special credit facility to indian exporters of consultancy and technology services. Toys and Sports goods y Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme will significantly benefit the Toys and Sports Goods Sector. y For project exporters Indian project exporters incur expenditure while executing overseas project export contracts. y Guarantee facilities Indian companies can evil of these to furnish requisite guarantees to facilitate. enabling them to rediscount export bills of their SSI customers. 2. 19 . y For commercial banks exim bank offers rediscounting facility to commercial banks.

regional development banks. against negotiation of shipping company 20 . for import of technology etc. The Indian exporters can obtain payment of eligible value from exim bank. equipment finance. to enable buyers in those countries. sovereign governments and other entities overseas. without recourse to them. to import goods and services from Indian deferred credit terms. y Lines of credit exim bank extends lines of credit(LOC¶s) to overseas financial institutions.y Finance for export oriented units exim bank provides term loan for project finance.

1 E PORT CRE IT FINANCE Exim bank offers the following export credit facilities. commercial banks and international entities. costs of mobili ation/acquisition of 21 . which can be availed of by Indian companies. provides access to finance at a manufacturing stage. Exim banks pre-shipment credit facility. y PRESHIPMENT CRE IT.e. enabling exporters to purchase raw materials and other inputs. in Indian rupees and foreign currencies. y SUPPLIERS CRE IT This facility enables Indian exporters to extend term credit to importers (overseas) of the eligible goods at the post shipment stage. y FOR PROJECTS E PORTERS Indian project exporters incur Rupee expenditure while executing overseas project export contracts i.CHAPTER 3 FINANCING PROGRAMMES 3.

2 FINANCE FOR EXPORT ORIENTED UNITS TERM FINANCE FOR EXPORTING COMPANIES y y y y y y Project Finance Equipment Finance Import of Technology & Related Services Domestic Acquisitions of businesses/ companies/ brands Export Product Development/ Research & Development General corporate finance.materials. Exim Bank offers a special credit facility to Indian exporters of consultancy and technology services. personnel and equipment etc. so that they can. enabling him to access the services of an overseas forfeiting agency. y FOR EXPORTERS OF CONSULTANC AND TECHNOLOGICAL SERVICES. WORKING CAPITAL FINANCE FOR EXPORTING COMPANIES 22 . y GUARANTEE FACILITIES Indian companies can avail of these to furnish requisite guarantees to facilitate execution and export contracts and import transactions. in turn. y FORFEITING. Exim Bank's facility helps them meet these expenses. Exim bank acts as facilitator for the Indian exporter. extend term credit to overseas importers. Forfeiting is a financing mechanism that enables a company to convert credit sale to cash sale. 3. on ³without recourse´ basis.

3 E PORT CRE IT 23 .y Funded o o o o o Working Capital Term Loans [< 2 years] Long Term Working Capital [up to 5 years] Export Bills Discounting Export Packing Credit Cash Flow financing. y Non-funded o Letter of credit limits o Guarantee limit 3.

y

FOR COMMERCIAL BANKS

Exim bank offers Rediscounting facility to commercial banks, enabling them to rediscount export bills of their SSI customers, with usance not exceeding 90 days. We also offer Refinance of Suppliers Credit, enabling commercial banks to offer credit to Indian exporters of eligible goods, who in turn extend them credit over 180 days to importers overseas.

y

OTHER FACILITIES FOR INDIAN COMPANIES

Indian companies executing contracts within India, but which are financed by multilater al finan ce agencies, can avail of credit under our finance for deemed exports facility, aimed at helping them meet cash flow deficits.

y FOR OVERSEAS ENTITIES

Overseas buyers can avail of Buyers Credit from Exim bank, for import of eligible goods from India on defe rred payment terms.

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3.4 Overseas Investment Finance
Finance for Indian Company's equity participation in the overseas Joint Venture (JV)/ Wholly Owned Subsidiary (WOS)
y

Direct Finance (Term & Working Capital) to the overseas JV / WOS Finance (for equity/debt component) for acquisition of overseas businesses / companies including leveraged buy-outs including structured financing options.Direct Equity by Exim Bank in the overseas JV/ WOS of an Indian Company.

y

3.5 AGRI FINANCE

The globali ation and post-WTO scenario offers considerable scope for exports of Indian agricultural products. Exim Bank has a dedicated Agri Business Group to cater to the financing needs of export-oriented companies dealing in agricultural products. Financial assistance is provided by way of term loans, pre-shipment/postshipment credit, overseas buyers' credit, bulk import finance, guarantees

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etc. Term loans with varying maturities are provided for setting up processing facilities, expansion, moderniz ation, purchase of equipment, import of equipment/technology, financing overseas joint ventures and acquisitions etc. The Bank has strong linkages with other stakeholders in Agri sector such as Ministry of Food Processing Industries, GoI, NABARD, APEDA, Small Farmers' Agri-Business Consortium (SFAC), and National Horticultural Board etc. The Bank also publishes a number of Occasional Papers, Working Papers on export potential of various sub -sectors in agriculture and a bi-monthly publication in different languages on global scenario in agri-business and opportunities therein.

y Exim Bank has signed a Memorandum of Cooperation with

DHAN Foundation, Madurai (a leading NGO covering 3 lakh families in 4 states) for advisory and financial support for export related activities for their grass root enterprises
y Set up units to produce value-added products from organic

tamarind grown in the area
y Steps are on to set up an export oriented coco-peat projects y To market products made out of palm leaves and handmade

papers in Europe through our overseas offices.

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the first three films financed by Exim bank has been commercially successful across India and overseas market.15 crores for film production .3.6 FILM FINANCE The bank has till date -sanctioned loans more than Rs 33. Ltd. FILMS FINANCED B y y y y y y y y EXIM BANK Honeymoon Travels Pvt.The Chase Begins Again Fanaa Bunty Aur Babli Salaam Namaste Veer Zaara 27 . Kabul Express Dhoom -2 Don .

7 PROJECT FINANCE  For setting up of EOUs Exim bank offers term loans for setting up of new projects.3. to enable them to upgrade their manufacturing facilities. 28 . and acquisition of assets for modernization/upgradation/exansion of existing units. To address the perceived constraint in the availability of trained software professionals. Exim Bank extends term loans to software exporters for establishment/expansion of software training institutes.  For software industry The bank offers a comprehensive financing /services package for the software industry. for term loan sanctioned by the lending bank to an EOU. The bank also extends 100% refinance to commercial banks.  For textile and jute industries The bank also extends finance to eligible units in texti le and jute industries under The Technology Up gradation Fund Scheme.

29 . storage and related activities like dry docks and ship breaking. cargo handling. the bank also facilitates setting up of software technology parks (STPs).  For Indian companies involved in port development and related activities Exim Bank extends term loans to Indian companies involved in construction of ports/jetties. and for acquisition of fixed assets for stevedoring.Further.

The definitions of µsmall and µmedium¶ si ed enterprises differ from one country to another. and the use of energy.1 Definition of SMEs in India and World In India the small and medium enterprises are not well defined. 10 crores may be treated as medium enterprises. Organi ation for Economic Cooperation and Development (OECD) defines establishments with up to 19 employees as µvery small¶. volume of output or sales. The internal group set up by the Reserve Bank of India has recently recommended that the units with investment in plant and machinery in excess of SSI limit and up to Rs.Small & Medium Enterprises & Agricultural finance 4.Chapter 4 E port Import Bank of India . between 30 . value of assets employed. SMEs have been defined against various criteria such as the number of workers employed.

for coverage under this programme. Thus the definition of SME varies from country to country and from region to region. India has a vibrant SME sector that plays an important role in sustaining economic growth. from 100 to 499 employees as medium and over 500 employees as large enterprises. the SSI sector accounts for over 90% of industrial units in the country. At present. 4. with a turnover not exceeding Euro 50 million.2 Importance of the SME sector The SSI sector in India employs around 26 million people and is involved with the production of over 7500 industrial items with the product range varying from very simple items produced with traditional technology to high tech products.20 and 99 employees as µsmall. 40% of value addition in the 31 . contribution to national output and exports. However. fostering new entrepreneurship and to provide depth to the industrial base of the economy. MIGA defines SMEs. as firms with not more than 300 employees. increasing trade. such as employment generation. called the Small Investment Programme (SIP) that is specifically designed for SMEs. value of assets not exceeding US $ 15 million and annual sales not exceeding US $ 15 million. Multilateral Investment Guarantee Agency (MIGA) has recently developed a guarantee programme. T he importance of SME sector is well-recognized world over owing to its significant contribution in achieving various socio-economic objectives. The European Union defines SMEs that have employees of less than 250. generating employment and creating new entrepreneurship in India. many establishments in some developing countries with 100 to 499 employees are regarded as relatively µlarge¶ firms.

Major sectors contributing to SSI exports include readymade garments (27%). exports have grown double digit in the last 10 years. not adequately focused. These include providing business leads. and processed foods (11% each).manufacturing output and approximately 35% of India¶s exports. The SMEs find the services of reputed national and international consultants as not cost effective and often. SSI sector in India has been exhibiting a striking export performance. Recognizing this knowledge gap. Barring few years. electronics & computers. 4. chemicals & pharmaceuticals. Exim Bank of India has been endeavouring to provide a suite of services to its SME clients. handholding during the process of winning an export contract and thus assisting the generation of export business on success fee basis. countries/ 32 . engineering goods (14.5%).3 Exim Bank and SMEs Indian SMEs require business advisory services to enhance their international competitiveness in a highly competitive globalising world.

The Bank. Geneva. This initiative is being launched by ITC for the first time in any country. Recently. etc. Exim Bank has implemented a number of innovative programmes focusing primarily on SMEs. which are targeted towards SME sector. 33 . to implement the Enterprise Management Development Services (EMDS) programme. and financial advisory services such as loan syndication. in the past. In the past. etc.sector information dissemination. has operated an Agency Line of Credit for IFC and an Export Marketing Programme for the World Bank. capacity building in niche areas such as quality. Exim Bank¶s Lines of Credit help SMEs to offer competitive credit term to the buyers and to explore newer geographical markets. export marketing. The Bank proactively assists SME units in establishing their products in international markets. the Bank has signed a Memorandum of Cooperation with the International Trade Centre (ITC). safety. for supporting SMEs in their globalisation efforts.

2 Innovative Programme for SMEs The Bank has entered into a cooperation arrangement with International Trade Centre (ITC). The Bank thus supports small enterprises through capacity building and assistance in formulation of viable proposals. From the Asian Development Bank. 5. Geneva. The Bank has partnered ITC in implementing this project. The Bank will have an option to draw the funds in different currencies.CHAPTER 5 RECENT DEVELOPMENTS 5. as per the needs of its customers.1 EXIM¶s focus on SMEs Special Line of Credit from ADB: The Bank is negotiating a long term Line of Credit of US$ 250 mn. for implementing a unique Enterprise Management Development Services (EMDS) program. which is an IT based solution provider to enable small enterprises to prepare business plans with international market in focus. without Central Government guarantee. This is a pioneering initiative for supporting SMEs and for providing term loans and export finance facilities to the identified units to help them in their globalisation efforts. for extending loans to SMEs . It is envisaged that the learning from this programme would be transferred to other developing 34 .

The Bank has partnered the Commonwealth Secretariat in the Commonwealth ± India Small Business Competitiveness Development Programme. and thus assist in capacity creation and institution building in the global arena. which have assisted projects that have created a development impact in their respective countries. trade and economic activity) in Commonwealth member states by providing competitive strategies and policies on SME development to practitioners and policy makers. and to build and develop institutional capacity. Awardsare given to member institutions. an IT 35 . The Bank has been conferred the 2008 ³SME Development Award´. investment.countries.3 ADFIAP Development Award The Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) Development Award recognises and honours ADFIAP member institutions. The Award is in recognition of the Bank¶s ³Enterprises Management Development Services (EMDS)´ programme. 5. The objective of the programme is to undertake capacity development initiative that promotes economic development (increased employment. which have implemented or enhanced outstanding and innovative development projects during the year.

y Occasional Paper : Institutional Support to SMEs A Study of Trade and Investment Potential y Occasional Paper : Institutional Support Systems for SMEs in India and International Experiences 36 .based solution provider to enable small enterprises to prepare business plans with international market in focus 5.4 Debt restructuring scheme for small and medium enterprises Publications y Export Performance of Small and Medium Enterprises in India in research brief.

as well as. and serves as an effective market entry tool. 37 . on its own. without recourse to them. against negotiation of shipping documents. to import goods and services from India on deferred credit term s. regional development banks. at the behest of Government of India. Exim Bank extends LOCs. LOC is a financing mechanism that provides a safe mode of non -recourse financing option to Indian exporters. to enable buyers in those countries.CHAPTER 6: LINE OF CREDIT Introduction Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions. especially to SMEs. The Indian exporters can obtain payment of eligible value from Exim Bank. sovereign governments and other entities overseas.

Exim Bank accords approval to the contract. if in conformity with the terms of LOC. 38 . 7. 6. Exporter executes the contract/ships the goods/provides services. 4.1:. 5. 2. Exim Bank signs LOC Agreement with overseas Borrower Institution (Borrower) and announces the availability of LOC for utilization.How does it work? 1. available amount under the LOC and quantum of service fee payable to Exim Bank. The Importer arranges remittance of advance payment to the Exporter and also opening of a Letter of Credit. Importer approaches the Borrower for approval of the contract. if any. 3.6. Exporter checks with Exim Bank. Exim Bank conveys contract approval to the exporter and the Borrower. and negotiates contract with Importer. approves the contract and refers to Exim Bank for concurrence for inclusion of contract for being financed under the LOC. which states that the contract is covered under Exim Bank's LOC to the Borrower and reimbursement will be by Exim Bank for the Eligible Value of Credit. upon compliance with stipulated conditions therein. If satisfied. Borrower appraises the proposal. when the Agreement becomes effective.

Borrower repays Exim Bank on due dates. 10. Exim Bank/commercial bank in India. 9. 6.2:- Procedural flow chart 39 . on receipt of valid claim and service fee. Exim Bank reimburses the Negotiating Bank.8. designated as the Negotiating Bank negotiates shipping documents and pays the exporter. as applicable. by debit to the LOC account of the Borrower.

whilst the overseas importer enjoys deferred 40 . Exporter ships goods. Exporter checks procedures and Service fee with Exim Bank and negotiates contract with Importer. Exim Bank approves contract and advises borrower and also exporter and commercial bank . 6. 8.Procedural flow chart : 1. without recourse to them. Borrower approves contract. against negotiation of shipping documents. 5. 7. Commercial bank negotiates shipping documents and pays exporter . the Indian exporters can obtain payment of eligible value from Exim Bank. 9. Borrower repays Exim Bank on due date. 3. 2. Importer consults borrower and signs contract with exporter . Exim Bank reimburses Commercial bank on receipt of claim by debit to borrower . 6.3:- Benefits to the Indian Exporter: Under Exim Bank's LOCs. Exim Bank signs agreement with Borrower and announces when effective. The Indian exporter does not carry any credit risk either on the importer or the importer's country. 4.

The overseas importer and the Indian exporter do not have to negotiate credit terms separately as the credit arrangement between Exim Bank and the overseas borrower financial institution is already in place. goods and services.Interest rate the overseas importer of Indian goods has to pay The overseas importer of Indian goods has to approach the overseas borrower financial institution/recipient of Exim Bank's LOC.5:- Credit period allowed under the LOC Eligible Goods: Capital goods. which need deferred credit for buying Indian machinery. Thus. 6.6:.4. LOC is a safe mode of non -recourse financing option to the Indian exporter and serves as a market entry tool for India's exports. The interest rate that the importer will need to pay to the recipient of Exim 41 . for approval of his proposal for import of Indian goods on deferred credit terms.credit facility. consumer durables and any other items eligible for being exported under the 'Exim Policy' of the Government of India. As the LOC is extended by Exim Bank on internationally competitive terms. 6. the overseas importer of Indian goods is allowed access to the credit facility at competitive i nterest rates. industrial manufactures. plant and machinery. where required.- Benefits to Overseas Importer of goods and services: Exim Bank has been using the LOC mechanism for promoting India's exports to the traditional as well as new markets in developing countries. 6. The Indian exporter can also increase his expo rt volumes by offering deferred credit.

raw materials and commodities is 42 . the risk perception of the importer and the interest rate structure prevalent in the country. whereas the export of industrial manufactures. In respect of LOCs extended by Exim Bank. no service fee is normally payable by the exporter to Exim Bank. Exporters would be well advised to check the particulars of the individual LOC with Exim Bank.Minimum value of contract for being eligible for coverage under the LOC Most of the LOCs stipulate a minimum contract value as US$ 50000. under certain LOCs. The exporter should check in advance with Exim Bank the quantum/percentage of service fee payable. Generally. the Indian exporter has to pay a service fee to Exim Bank. It may however be mentioned that Exim Bank's interest rates on LOCs being competitive. consumer durables. at the behest of Government of India. the importer would normally have to pay interest rate lower than what he would otherwise pay to his Bank on similar credits.7:. the currency of credit. will depend on various factors such as the cost of fund. 6.Charges payable by the Indian exporter to Exim Bank In respect of certain LOCs. However. tenor of credit.Bank's LOC. 6. security offered by the importer.8:. the minimum value of contract could be different. export of capital goods and plant and machinery is allowed on credit terms of upto 5 years.

he does not have to obtain any ECGC cover.9:. in advance. There are certain short -term LOCs which provide for credit period of 1 year.The stage at which the Indian exporter should contact Exim Bank The Indian exporter should contact Exim Bank before finalizing the price negotiation with his prospective importer.10:-ECGC cover As the LOC is a non-recourse financing option to the Indian exporter. the credit period allowed under each LOC could be different. However. 6. 6. based on their levels of incomes and external debt. the payment procedure involved and the contact person/department in the overseas borrower institution/recipient of LOC. the credit period permissible under the LOC. at the behest of Government of India. at the behest of Gove rnment of India. credit period ranges from 8 years to 20 years depending on the caegories of countries. In respect of certain LOCs especially those extended by Exim Bank. if the transaction is intended to be covered under Exim Bank's LOC. The exporter should ascertain details such as the service fee payable to Exim Bank. 43 . In respect of LOCs extended by Exim Bank. Exporters are advised to check the details with Exim Bank. and there are certain LOCs which permit credit period beyond 5 years.allowed on credit terms of upto 2 years. sectors/projects could be pre identified.

2 Finance for service sector Services sectors financed by Exim Bank include entertainment. for development of new technology to satisfy domestic and international environment and standards.3 Natural resources Exim bank selectively provides term loans to Indian companies in their endeavor to acquire overseas natural resources in terms of acquiring mining/exploration rights in overseas locations. health care. finance will be available to Indian companies for acquisitions of such rights either on its own or in joint venture with an overseas partner. subject to a reasonable proportion of the resources being destined for India. hospitality and shipping. Exim. film production and finance for distribution in overseas markets. 44 . 7. 7. Exim Bank has entered into the business of film financing on a very selective basis to cover.1 Finance for R & D and Export Product Development Exim bank offers term loans to EOUs. and to help them develop and/or commercialize new product/process applications.CHAPTER 7 OTHER FACILITIES 7. inter alia.

7. b) deferred payment guarantees. 7. to aid them in their efforts to penetrate and retain their presence in overseas markets. particularly in developed countries.4 Underwriting Exim bank extends underwriting commitment to Indian exporters. c) guarantees in favor of commercial banks/lending institutions abroad on behalf of Indian exporters.These include: a) export obligation guarantees.5 Export Marketing Finance Exim bank offers term loans to Indian companies. 7.7 Guarantee facility Exim bank issues different kinds of guarantees for EOUs.6 Import loans Exim bank finances bulk imports of consumable inputs and canalized items undertaken by manufacturing companies.7. 45 . to help them raise finance from capital markets through public/rights issues of equity shares /debentures.

8 Finance for venture overseas.7. Exim bank offers term loans to Indian compani es. loans. The bank has a comprehensive programme in terms of equity finance. Exim Bank also undertakes Direct Equity Stake in Indian Ventures Abroad. Besides. 46 . to enable Indian companies to supplement their equity with Exim Banks equity contribution. both for equity investment in their ventures overseas as well as for on lending purposes. guarantees and advisory services to support Indian outward investment.

advisory. Capability. which enable exporters to evaluate international risks. y Advice on preparation of Expression of Interest. y Information on procurement guidelines. and other official Development Agencies like the Japan Bank for International Cooperation. y Details on specific project of interest.1 EXPORT SERVICES Exim bank offers a diverse range of information. Profile etc. and support services.CHAPTER 8 OTHER SERVICES 8. 47 . exploit export opportunities and improve competitiveness. Asian Development Bank. 8. policies and practices of multilateral agencies.3 Services offered include y Identification of business opportunities in funded projects.2 For Multilateral Agencies Funded Projects Overseas (MFPO) Exim bank offers value added information and support services to Indian companies seeking business in business funded by multilateral agencies such as World Bank. African Development Bank. European Bank for Reconstruction and Development. 8.

48 . trade finance alternatives. and specifying distribution channels. 8. such as liaising with Indian missions. 8.5 Country profiles Exim bank also undertakes country profiles. along with the export opportunities in the country concerne d.4 Commercial services Exim bank undertakes customized research on behalf of interested companies. etc. currency and credit risks involved. assistance in prequalification etc. collection/payment systems. which assess the economic.y Advice on bids. as well on the credit worthiness of business entities and banks. obtaining quality certificatio ns and display of their products in our overseas offices. We also assist companies in developing export market entry plans. 8. political. defining marketing arrangements. with regard to bid evaluation.6 Financial counseling Exim bank offer advice on how to access foreign currency finance from multilateral institutions and import lines of credit. review of bid documents. in areas such as establishing market potentials. Apart from these we also offer support services. monitoring bid performance.

which communicate business leads. acquisition opportunities. through its quarterly bulletin.8. workshop and seminars for exporters. often on sector -specific issues. through its network of alliances and its overseas offices.9 Building export capability Our Eximius Learning Centers in Banglore. 8. partners. 49 . These programmes.8 Information access Exim bank issues business opportunities alerts. 8. The bank disseminates information on export opportunities and highlights development that has a bearing on Indian exports. Ahmedabad and Pune organize training programmes. The bank also carries out research on issues related to international trade. Eximius: Export Advantage . and in consummation of domestic and overseas joint ventures. industry trends as well as collaboration opportunities. are conducted buy international experts from trade promotion organizations and multinational companies. economics and sector/product/country studies. It also advice companies on regulatory clearances. and facilitate tying -up finance for equity and working capital.7 Internationalization support Exim bank helps in identifying technology suppliers. which it publishes in the form of Occasional Papers and Working Papers.

10 International merchant banking services Exim bank provides advisory services to Indian exporters to enable them to offer competitive financial packages when they bid for exports. 50 . 8. 8.11 exim bank as an international consultant. Hindi and 10 regional languages. The bank supports three quarterly publications viz µIndo ± African business´. LAC CIS regions. and the export credit guarantee company in Zimbabwe. Exim Bank in Malaysia. y Designing and operational sing of export financing programmes in turkey and South Africa. ³Indo-LAC business´ and ³Indo-CIS Business´. Our activities in this regard includes: y Feasibility study for establishment of an export credit and guarantee facility for Gulf Co-operation Council ( GCC) countries.Besides. Exim bank shares its expertise in the creation and operation of a financial institution in a developing country. this publication also carries a regular feature. with countries endeavoring to set up institutional infrastructure for international trade. country scan. The bank also brings out a bi-monthly publication titled ³Agri Export Advantage´ in English. which gives update on the trade/investment climate in various countries. Exim Banks commitment to promoting and supporting trade with the African. y Setting up the Afriexim Bank.

and international finance corporation. 8. FIM bank .GTF offers factoring for export and domestic receivables with credit protection.JOINT VENTURES Global procurement consultants limited (GPCL) is a successful consultancy company. Global trade finance limited (GTF). Malta. y Feasibility study. undertaken on the behalf of the government of Mauritius. for ³projecting Mauritius as an investment hub for Indian firms. GPCL provides procurement related services particularly related to multilateral agencies such as World Bank.y Inputs regarding export marketing/export development for Armenia.in partnership with leading private and public sector consultancy firms in India. promoted by Exim bank in 1996. Washington and bank of Maharashtra commenced its business in September 2001. 51 . Asian development bank and African development bank.12:. a joint venture which had its shareholders. The focus of GTF¶S activities is on market driven export-financing solutions for small and medium sized Indian firms. Vietnam and Ukraine. Exim bank.

CHAPTER 9 PROMOTIONAL PROGRAMMES 9. The Bank supports three quarterly publications viz. Kyrgyz Republic.An Analysis. Uzbekistan. a) Sector studies assessing export potential: the sectors covered are Computer Software. The 52 . Floriculture. Business Practices of Successful Indian Exporters The Bank disseminates on export opportunities and highlights developments that have a bearing on Indian exports. Jute. Organic Products. countries. which gives updates on the trade/investment climate in various countries. Medicinal Plants. Machine Tools. Chemical and Pharma. Country Scan. Australia & New Zealand -Trade & Investment Potential c) International trade related studies: Transaction Costs of Indian Exports. sectors. Eximius: export advantage. b) Bilateral trade and investment studies: Kazakhstan. These include your.1 Promotional activities Exim Bank conducts Research Studies on products. macro economic issues relevant to international trade and investment. Sports Goods. Steel. Israel. Sri Lanka. Its Eximius: Export advantage publication also carries a regular feature. through its quarterly bulletin.Trade Potential.

The high performance standards set down in order to qualify for the Award serve to foster strong commitments to the TQM in the company¶s journey towards Business Excellence. Support with these magazines demonstrates Exim Bank¶s commitment to promoting and supporting the trade with Africa. 9. The bank supports three quarterly publications viz. presents as Annual Award for Business excellence for the best TQM practices adopted by an Indian company.2 Award for Business Excellence Exim Bank. Trade & Development and Related Financing by Indian nationals at universities and academic 53 . The objective is to promote research in International Economics. Indo-Africa Business. EXIM BANK INTERNATIONAL ECONOMIC DEVELOPMENT RESEARCH ANNUAL (IEDRA) AWARD. 2008 In commemoration of Jawaharlal Nehru Birth Centenary (1889 1989) 9. Latin America and CIS regions.CIS business.3 The award Export-Import Bank of India has instituted an Annual Award for research in International Economics. Trade & Development and Related Financing. Hindi and 10 regional languages.Bank also brings out a bi-monthly publication titled Agri-Export Advantage in English. and Indo. Indo ± Latin America Business. in association with the Confederation of Indian Industry (CII).

Eastern Europe. CIS countries. Thesis can be submitted either in English or Hindi. and th e Mekong Delta region. and in the latter case must be accompanied by a version in English. Trade & Development and Related Financing (either awarded a Doctorate or accepted for award of Doctorate) from a university or equivalent academic institution in India or abroad is a prerequisite for eligibility of Award. thesis by which doctorate has been obtained/ accepted for award of Doctorate between January 1. The Award will consist of a sum of Indian Rupees One Hundred Thousand and a Citation. 2008. As a result of this arrangement. China.4 The entry Research work by Indian nationals in International Economics. 54 . Exim Bank is a participant in the trust funds set up by the IFC in different parts of the world.institutions in India and abroad. as entry. including Africa. The Award was initiated in commemoration of Jawaharlal Nehru Birth Centenary (1889-1989). Support to Indian Consultants for undertaking services abroad Under an agreement with the International Finance Corporation (IFC). Indian consultants can avail of its support for undertaking specific assignment in select countries. South Asia. Exim Bank will accept. The Award will be made to a person eligibl e to receive an award in Indian Rupees. 9. Washington. 2004 and September 30.

which have assisted projects that have created a development impact in their respective countries. leveraging effectively upon the Bank's extensive institutional and trade promotion linkages. y The Bank has been conferred the 2006 'Trade Development Award'.5 ADFIAP DEVELOPMENT AWARD y The Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) Development Award recognizes and honours ADFIAP member institutions.9. 55 . and its support and financing programmes. The Award is in recognition of the Bank's initiative for supporting village and rural industries to explore markets overseas.

1 Term Deposits: Issued for tenors 1 to 5 years. 56 . An incentive in the form of a higher rate is available to senior citizens. The deposits are non-transferable. Applicable rates On the deposits for different tenors is published from time to time. Minimum size of each deposit is Rs.CHAPTER 10 RUPEE RESOURCES OF EXIM BANK 10. 10.000/-.

5 lakh (face value) or multiples there of Eligible investors Include individuals.10. companies. trusts.3: Certificates of Deposit (CD) Issued for tenors 1-3 years at mutually agreed rates in multiples of Rs 1 lakh with minimum amount of a CD from a single subscriber at Rs. other corporate bodies registered or incorporated in India And unincorporated bodies. 57 . associations etc. 10.Resident Indians (NRIs) and Foreign Institutional Investors (FIIs) (investment By FIIs would be within the limit set for their investments by the Securities and Exchange Board of India (SEBI)). for maturities of 15 days . and non -resident Indians (NRIs) 10.one year in denomination of Rs. Eligible investors include individuals (other than minors). corporations.4: Commercial Papers (CPs) Issued at a discount to the face-value at mutually agreed rates. 1 lakh.2: Term Money: Bank can borrow term money for 3-6 months from scheduled commercial banks and cooperative Banks at mutually agreed rates. funds. banking companies. Non.

Distributors with proven track record can empanel with the Bank for arrangement of term deposits 58 . The coupon on the bond may be fixed or floating (linked to a mutually acc eptable 'reference rate'). ICRA and Fitch. the same would not be exercisable before the expiry of one year from the date of issue of bonds.10. All the above instruments currently enjoy the highest safety rating from CRISIL. In respect of bonds having call / put or both options.5: Bonds Issued for a minimum maturity of 3 years.

Minister for National Planning & Economic development of Myanmar. Chairman & Managing Director. the government was supporting the setting up of private banks and had begum privatization of petrol filling stations. U Soe Tha. y Minister Tha said that about 400 foreign enterprises from 31 countries were doing business from and with Myanmar. Nyi Phyu Hla. Myanmar Foreign Trade Bank at Federation House . accounting for an investment of US$ 23 billion. EXIM Bank and Mr. T C A Ranganathan. after the signing of a Memorandum of Understanding (MoU) by Mr. y The Myanmar Government was encouraging the involvem ent of the private sector in a big way. For instance. y These projects will be executed by the India¶s state -owned RITES Ltd. In contrast only 5 Indian 59 .RECENT NEWS: y EXIM Bank of India extended a US$ 60 million line of credit to Myanmar for financing of railway projects. truck assembly plant and electricity transmission lines in Myanmar. Managing Director. EXIM Bank has so far extended several lines of credit to Myanmar aggregating US$ 250 million for a variety of projects such as railways. This was announced by Mr. refinery. telecom.

H.000. Aun porn Moniroth. y The new areas for cooperation were identified as construction.E. 60 .prabhakar dalal. in the presence of the president of india.E. development of hydropower and manufacturing in Myanmar. and the prime minister of cambolia. ED. Hun sen.companies were present in the country with an investment of US$ 200. at Royal palace in phnom penh. Ministry of economy and finance of the government of Cambodia. H. secretary of state. Pratibha devising patil. y Exim bank signs LOC with Cambodia. Export import bank of india signing a line of credit agreement for US $ 15 mn with HE dr.

S. This policy affords commercial and political co verage against the failure of an overseas financial institution (issuing bank).S. The policy applies to irrevocable letters of credit which conform with the Uniform Customs and Practice for Documentary Credits (UCP). 1993 revision. Coverage is also provided for the insured bank's refinancing of payments under a sight irrevocable letter of credit of the issuing bank. The policy is not applicable to revocable. 61 .S. personnel either in the U. back -to-back. to make payment or reimbursement to the insured bank on an irrevocable letter of credit. exports. Coverage applies to irrevocable letter of credi t sales for goods produced in and shipped from the United States during the policy period. red clause or conditional letters of credit. whether sovereign or private. Receivables for products. content.SUMMAR The Exim Bank Letter of Credit policy can reduce a bank¶s risks on confirmations and negotiations of irrevocable letters of credit issued by overseas financial institutions for the financing of U. and for services Performed by U. which are less than 50% U. publication number 500 of the International Chamber of Commerce where the insured has a relationship with the foreign issuing bank. or in a host country.S.

excluding mark-up.S. On a case-by-case basis. Principal amounts are covered up to the maximum insured percentages stated below or as specified in the policy declarations. ferti lizer and capital equipment may be insured on terms up to 360 days. agricultural commodities." The policy specifically excludes coverage for those transactions in which there is an unresolved documentary dispute between the insured and the issuing bank. 62 . under the table "Money Rates.5% or the rate stated in the credit agreement. the insured interest rate is generally prime rate minus 0. Exim Bank uses the prime rate published in the Wall Street Journal. whichever is less. Terms up to 180 days from the date of first presentation of documents may be extended for consumer goods. are not eligible for cover. Additionally. and certain defense products. coverage is specifically excluded in situations in which the issuing bank refuses documents at the time of presentation and seeks a refund from the insured bank to which a reimbursement has already been made. On letters of credit that are payable in U. dollars. Documented interest is covered up to 180 days after the date of the issuing bank's default (or fewer days when the claim is settled earlier). spare parts and raw materials.

working capital finance. project finance and not to mention its Lines of Credits facility. With the advent of globalization. investment & expertise. advances. by extending financial assistance to different countries in the form of loans. but at every step was a higher learning & a better understanding of why the Export Import Bank of India is well established in the minds of many. along with many hurdles along the way. Exim Bank recognizes that the these sectors have great potential & with the right assistance. rediscounting fac ilities.CONCLUSION The journey. which has been seen through its involvement in creating export capability in small & medium enterprises. support. While working on this project I came to realize that the essence of Exim Bank lies with its ability to recognize the changing global scenario and move ahead with the world. today. the purchasing power at the bottom of the pyramid can increase thus leading to a gradual effect in all other sectors and thus the overall development of 63 . grassroots business enterprises & agro industries. Towards facilitating inclusive globalization is the banks new initiative. consultancy. the Bank has been able to achieve international recognition & today it can be truly called a catalyst for India¶s international trade. the barriers to trade are getting dismantled & the dividing lines between national & global markets are slowly disappearing. Because of its range of differentiated and tailor made products and services.

64 . It is the backbone of Indians foreign trade and today that India¶s foreign trade is touching heights. Throughout the entire project we have referred to all the various functions and duties that Exim bank has undertaken in all these years. This project has mainly put light on Exim bank of India.Exim bank of India has grown exceptionally well in all those years and catered to the needs of all those thousands and millions of people in their export and import regulations. Exim bank has played the major role in fulfilling that expectation. which is leaving no stone unturned in making its mark globally.it has taken various functions apart from export and import duties.the economy which was ultimately the aim of the Bank at the time of its incorporation and still is. It is now India¶s one of the largest financial institution and is acclaimed worldwide for all the functions it carries out. Lastly we can say that it is not just a bank. It ha s been graded A+ + + by CRISIL. but an enormous financial institution.

com .Scheider  International banking and finance by Dipak Abhyankar.S.com  www.  Practice and law of Banking by B. 65 .eximbankindia.com  www.org.  www.rbi.org/wiki/Wealth management  www.com.moneycontrol.com  www.BIBILIOGRAPH Websites  www.eximcomm.  Export Import Financing by Gerhard.  en.eximbankagro.wikipedia. Khubchandani.com Books  Banking Theory and Practice by Sundaram and Varshney.google.W.

Exim Bank Of India Newspapers  Economic Times  Hindu Business Line  DNA 66 . March 2008.  Annual Report 2007-2008 ± Exim Bank.Publications:  Export-Import Act of India 1981  News letters.  Brochure.Eximius. June 2008.