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Unit 3: EXIM Strategies

participation in overseas ventures, direct equity participation by Exim Bank in the overseas Notes
venture and non-funded facilities such as letters of credit and guarantees to facilitate local
borrowings by the overseas venture.
The Bank provides financial assistance by way of term loans in Indian rupees/foreign currencies
for setting up new production facility, expansion/modernization/upgradation of existing
facilities and for acquisition of production equipment/technology. Such facilities particularly
help export oriented Small and Medium Enterprises for creation of export capabilities and
enhancement of international competitiveness.
Under its Export Marketing Finance programme, Exim Bank supports Small and Medium
Enterprises in their export marketing efforts including financing the soft expenditure relating to
implementation of strategic and systematic export market development plans.
The Bank has launched the Rural Initiatives Programme with the objective of linking Indian
rural industry to the global market. The programme is intended to benefit rural poor through
creation of export capability in rural enterprises.

Did u know? In order to assist the Small and Medium Enterprises, the Bank has put in place
the Export Marketing Services (EMS) Programme. Through EMS, the Bank seeks to establish,
on best efforts basis, SME sector products in overseas markets, starting from identification
of prospective business partners to facilitating placement of final orders. The service is
provided on success fee basis.
Exim Bank supplements its financing programmes with a wide range of value-added information,
advisory and support services, which enable exporters to evaluate international risks, exploit
export opportunities and improve competitiveness, thereby helping them in their globalisation
efforts.

3.2.2 Export-Import Bank of India-Agri Business Group

The EXIM bank of India was established by Govt of India for providing financial assistance 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 country’s international trade.
It is further classified into Operating Groups namely:

Corporate Banking Group, which handles a variety of financing programmes for Export
Oriented Units (EOUs), Importers, and overseas investment by Indian companies.
Project Finance/Trade Finance Group handles the entire range of export credit services
such as supplier’s credit, pre-shipment credit, buyer’s credit, finance for export of projects
and consultancy services, guarantees, forfeiting, etc.

Lines of Credit Group Lines of Credit (LOC) is a financing mechanism that provides a safe
mode of non-recourse financing option to Indian exporters, especially to SMEs, and serves
as an effective market entry tool.

Agri Business Group, to spearhead the initiative to promote and support Agri-exports.
The Group handles projects and export transactions in the agricultural sector for financing.

Small and Medium Enterprises Group to the specific financing requirements of export
oriented SMEs. The group handles credit proposals from SMEs under various lending
programmes of the Bank.

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