India's Exim Bank


It was established as the apex financial institution for financing, facilitating and promoting India's foreign trade in 1982 under an Act of Parliament.

The Bank primarily lends for exports from India, including support to overseas buyers and Indian suppliers for exports from India for construction and infrastructure projects, machinery, products and services.

It is governed by the RBI.

 

Scheme for Concessional Financing (CFS).

Since 2015-16, the government has funded Indian organisations bidding for strategically significant infrastructure projects abroad.

UPSC Prelims 2024 dynamic test series

Additional EXIM initiative-

GRID Initiative (Grass Roots Initiative and Development)

Financial support to support grassroots initiatives / technologies , particularly those with export potential, and to assist artisans / producer groups / clusters / small businesses / NGOs in achieving a remunerative return on their goods and promoting exports from these units.

 

Foreign Policy and Trade- Role of Exim:

Improve Foreign Trade: the Bank provides assistance in various financial, marketing and technical aspects to accelerate the growth of the Indian economy by engaging in various programmes and services for the benefit of Indian exporters, commercial banks and financial institutions to promote foreign trade in the region.

 

Growing India's sphere of influence: Exim Bank currently has 233 credit lines (LOCs) in place, covering 62 countries in Africa , Asia , Latin America and the CIS, with approximately $22.86 billion in credit commitments available to fund exports from India.

 

Function in Neighborhood Policy: The Government of India provides interest subsidies to SAARC countries for project exports through EXIM Bank of India.

 

  • Integrating ASEAN in India's Act East Policy by setting up the EXIM Bank Project Development Fund to catalyse the Indian economic presence in Cambodia, Laos , Myanmar and Vietnam.
  • Cooperation with the BRICS Bank: In 2018, Exim Bank of India entered into an MoU on general cooperation with the New Development Bank (NDB) to create a mechanism for cooperation in accordance with national laws and regulations, in addition to the transfer of skills and the sharing of information among the signatories.
  • Exim Bank of India, under the BRICS Interbank Cooperation Framework, is the nominated member development bank.

Any suggestions or correction in this article - please click here ([email protected])

Related Posts: