EXIM Bank or Export-Import Bank of India is India’s leading export financing institute that engages in integrating foreign trade and investment with the country’s economic growth. Founded in 1982 by the Government of India, EXIM Bank is a wholly-owned subsidiary of the Indian Government. The current Managing Director is David Rasquinha. It is headquartered in Mumbai, Maharashtra.
The organisation was established in 1982 under the Export-Import Bank of India Act 1981 as a purveyor of export credit. R.C. Shah was the bank’s first Chairman and Managing Director.
The bank’s functions can be grouped under products and services. They are discussed briefly below:
- Buyer’s credit – it is a credit facility programme that encourages Indian exporters to explore new regions across the globe. It also facilitates exports for SMEs by offering credit to overseas buyers to import goods from India.
- Corporate banking – it offers a variety of financing programmes to augment the export-competitiveness of Indian companies.
- Lines of credit – it offers extended a line of credit to Indian exporters to help them expand to new geographies and uses a line of credit as an effective market-entry tool.
- Overseas investment finance – it offers term loans to Indian companies for equity investments in their overseas joint ventures or wholly-owned subsidiaries.
- Project exports – encourages project exports from India and helps Indian companies secure contracts abroad.
- Marketing advisory services – help Indian exporters in their globalisation ventures by assisting in locating overseas distributors/partners, etc. Also, assists in identifying opportunities abroad for setting up plants projects or acquiring companies.
- Research and analysis – conducts research in the field of international economics, trade and investment, country profiles to identify risks, etc.
- Export advisory services – it offers information, advisory and support services enabling exporters to evaluate international risks, exploit export opportunities and improve competitiveness.
- Term deposit scheme
EXIM Bank is an important government organisation in India working in the field of exports. It plays a crucial role in helping Indian companies do business abroad and bring in foreign exchange. It is a part of the economy section of the UPSC syllabus and comes under General Studies Part III.
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