Professional Documents
Culture Documents
A Presentation
Imports
(US$ bn.)
GDP
(US$ bn.)
Trade as % of GDP 61.7 57.5 53.7 48.7 46.0 32.8 24.7 22.3
Korea 197.6 175.5 China 438.3 393.6 Mexico 165.4 171.0 Russia 135.9 75.4 South Africa 38.7 35.0 Argentina 29.4 13.1 Brazil 73.1 48.3 India 57.0 74.3 Source: Economist Intelligence Unit
All Commodities
Exim Policies Streamlined trade procedures Liberalised import regime Thrust on export orientation
Role of Institutions
Exim India
Institutions
dedicated
for
promoting
foreign trade have played an important role towards enhancing the process of internationalisation of Indian companies, viz. Export-Import Bank of India, Export Credit Guarantee Corporation, Indian Institute of Foreign Trade
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Exim Bank
Exim India
Set up
by an September, 1981
act
of
parliament
in
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 countrys international trade
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Exim Bank Study Strategy for Quantum Jump in Exports: Focus on Africa, Latin America and China
India
could aim to achieve: US$ 18 billion in Africas Imports by 2007 from US$ 3.8 bn in 2003-04 US$ 4 bn in Chinas imports by 2007 (in 64 identified groups) from US$ 0.86 bn in 2000 US$ 1.8 bn in LACs imports by 2007 (in 100 identified groups) from US$ 0.6 bn in 2000
Share in Indias Exports in 2003-04: Africa (6%); Latin America (1.8%); China (4.7)
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Lines of Credit
Exim India
Overseas Governments Parastatal Organisations/ Govt. Agencies Commercial Banks Regional Financial Institutions Particularly relevant for SMEs Eligible items all items permissible under Exim Policy Engineering Goods Consumer Durables Commodities
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AFRICA
ALGERIA PTA BANK covering GHANA BURUNDI KENYA COMOROS MALAWI DJIBOUTI MAURITIUS ERITREA, EGYPT NAMIBIA ETHIOPIA SEYCHELLES KENYA SOUTH AFRICA MALAWI SUDAN MAURITIUS TANZANIA RWANDA TUNISIA SOMALIA UGANDA SUDAN ZAMBIA TANZANIA UGANDA BOAD covering ZAMBIA BENIN ZIMBABWE BURKINA FASO COTE DIVOIRE MALI EADB covering NIGER KENYA SENEGAL TANZANIA TOGO UGANDA
ASIA
EUROPE
BANGLADESH INDONESIA KAZAKHSTAN IRAN , IRAQ BULGARIA SRI LANKA RUSSIA KOREA ROMANIA MALAYSIA HUNGARY THAILAND POLAND VIETNAM PHILIPPINES
Simplifying procedures and bringing down transaction costs Transaction costs are incurred at the pre and postproduction 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
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Textile/Garments Engineering goods Pharmaceuticals Chemicals Computer software Agro-Industries Electronic & Electrical machinery Plastic components Paper Industry Others
23 18 9 7 9 2 3 2 2 7
Simplified and less stringent bureaucratic procedures like single window clearance and business friendly approach Better technology due to higher levels of foreign investment, faster loading/unloading methods Flexible labour laws Cheap availability of power and raw materials, Freight incentives by the Government, Lower ocean freight rates due to greater availability of vessels
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Duty free entitlement for garments & handicrafts increased from 3% to 5% Will help exporters to move up the value chain However, further incentives required to consolidate Indias position in the postMFA era Handicraft Special Economic Zone to be established Will contribute to strong growth in handicraft exports Will generate employment opportunities
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Target Plus scheme introduced Will further boost exports from the successful exporters
Vishesh Krishi Upaj Yojana to boost horticulture exports Global trade in horticulture: US$ 79 bn (1999) Indias exports: US$ Rs. 1830 cr (1999-2000) Success 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
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Served from India scheme: Service providers who earn forex of at least Rs. 5 lakhs will be eligible for duty credit entitlement Will help small scale service providers Will enhance Indias share in global exports of services (1.4% in 2003)
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Feasibility study for establishment of an export credit and guarantee facility for Gulf Cooperation Council countries
Regional cooperation in export finance and export credit guarantees for ESCAP Study on promotion of international competitiveness and exports of manufactured goods for ESCAP
Setting up an Exim Bank in Malaysia Design of Export Marketing Seminars for SMEs in Vietnam Export Development Project : Ukraine Enterprise Support Fund : Armenia Establishing an Export Credit Guarantee Company in Zimbabwe Advisory services to Industrial Development Corporation of South Africa for international finance products Mauritius Study on Projecting Mauritius as an Investment Hub for Indian Firms
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Tie-up with
International Finance Corporation, Washington D.C.
Africa Project Development Facility Africa Enterprise Fund Mekong Project Development Facility South-East Europe Enterprise Development Facility Private Enterprise Partnership (CIS Countries) China Project Development Facility South Asia Enterprise Development Facility
Eastern & Southern African Trade & Development Bank (PTA Bank) African Management Services Company (AMSCO)
Exim sponsors consultants under GoI-AfDB cooperation Agreement
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Advisory Services
Exim India
Exemption from service tax 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
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Term Loans
Project Finance
Equipment Finance
Working Capital
Short Term < 1 year Term Loans for 1-2 years Long Term upto 5 years
EOU Projects & TUFS Software Training Institutes Minor Ports Technology Parks
Institutional Linkages
Exim India
Multilateral Agencies
World Bank
Asian Development Bank African Development Bank European Bank for Reconstruction & Development Multilateral Investment Guarantee Agency (MIGA) International Finance Corporation (IFC) UNIDO - Industrial Promotion Offices Afrexim Bank Eastern & Southern African Trade & Development Bank (PTA Bank)
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Institutional Linkages
Exim India
Poland Economic Development Board, Bahrain Investment & Trade Promotion Centre, Vietnam Centero Estero Vineto, Italy Centro Estero Camere Commercio Piemontesi, Italy. Netherlands Council for Trade Promotion. Board of Investment of Mauritius
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Institutional Linkages
Exim India
The Export-Import Bank of China. Croatian Bank for Reconstruction and Development. Czech Export Bank. Hungarian Export-Import Bank Ltd. Uzbekinvest National Export-Import Insurance Company. Exim Bank of Romania. Export-Import Bank of the Russian Federation. Forum of Asian ECAs
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Institutional Linkages
Exim India
Poland Economic Development Board, Bahrain Investment & Trade Promotion Centre, Vietnam Centero Estero Vineto, Italy Centro Estero Camere Commercio Piemontesi, Italy. Netherlands Council for Trade Promotion. Board of Investment of Mauritius
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Final Observations
Import of second hand capital goods allowed without age restrictions No outdated imported technology should be
Special Focus Initiatives Could be extended to other sectors of high export orientation like chemicals & pharmaceuticals Export orientation of FDI should be increased
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Low share of FDI in major export sectors Sector Transportation industry Computer software industry Chemicals & pharmaceuticals Textiles Leather & leather goods Services (incl. Hotels & Tourism)
Source: SIA, MOC&I
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Exim India
THANK YOU
www.eximbankindia.com
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