Importance of Import-Export Bank in IndiaPosted by Himanshu Goyal on April 15th, 2023 The Indian government has opened a lot of ways for the import and export industry of the country. It focuses on the growth of Indian exports in the international market. The import-export bank of India, commonly known as the EXIM Bank, is a vital element of the Indian economy. It has been developed to provide financial aid to the exporters and importers of the country in various ways. Earlier, the EXIM bank was a part of the IDBI. However, with the growth of the Indian economy, it received its unique identity. There are a lot of functions performed by the import-export bank, but the major motive behind its establishment is to fulfil the requirements of Indian exporters and importers and promote Indian exports on the global market. The Indian Government owns the EXIM Bank and it is regulated by the Reserve Bank of India. Import-Export Bank of IndiaThe EXIM Bank of India was established back in the year 1982 with the aim to promote foreign trade in the country. A board of members is also formed for the management of this bank and it is headed by the managing director. This bank primarily focuses to improve the import and export industry of the country. With the introduction of globalization, the EXIM Bank is now continuously searching for ways to promote the foreign trade sector of the country. An important fact of the EXIM Bank is that it has tie-ups with the European Bank for Reconstruction and Development. Both of them have signed an agreement to co-finance programs in the eastern part of Europe. Functions of the EXIM BankThere are a lot of functions assigned to the Import and Export Bank of India. Some of them are -
Financial Products of the EXIM BankThere are mainly four financial products that are provided by the import-export Bank of India. Corporate Banking: EXIM Banks offer various corporate banking facilities. It is done with the motive to implement financial programs to provide financial aid to home-grown companies. It is believed that this type of financial aid will increase their competitiveness and boost the export industry of the country. Buyers Credit: The buyers' credit facility enables any international buyer to open a letter of credit in favor of any Indian exporter. The buyers' credit enables international buyers to import any type of products or services from Indian exporters under deferred payment without complications. Providing finances to Overseas Investments: This has been introduced for Indian businesses that are willing to opt for joint ventures in a foreign country. This financial product has been developed with the motive to provide long-term loans to such businesses to increase the chances of more Indian exports in the global market. Line of Credit: The Line of Credit enables Indian exporters to explore the global markets in various regions and make a place in the already existing markets with the freedom over the risk of payments through the advanced use of the Line of Credit. ConclusionThe EXIM Bank is an important part of the Indian import-export industry. It is a bank that ensures all the finances and assets related to Indian imports and exports. It was established with the major goal of providing credit to Indian traders and ensuring safe & secure trades. This EXIM bank not only provides financial support to the Indian import-export industry but also provides guidance related to various import-export matters such as government schemes to promote more Indian exports, information regarding licenses such as Chartered Engineer Certificate, EPCG License, etc. Overall. Like it? Share it!More by this author |