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Unit 3: EXIM Strategies

(ii) Backward Linkage/Vendor Development Programme: The Export Vendor Notes
Development Programme aims to support development of backward
linkages by exporters. Rupee term finance is available on competitive
terms to exporters for implementing strategic vendor development plans
i.e. backward linkage for production of goods for exports in order to
increase exports. Export/Trading Houses or manufacturer-exporters with
satisfactory track record and strategic plan for development of backward
linkages for exports are eligible to seek finance under this programme.
Exim Bank may provide farm finance to exporters entering into backward
linkages through contract farming with farmers on partnership basis for
exports.
Finance for Research & Development: Exim Bank also provides lending for
Research & Development activities for facilitating exports.
3. Advisory Services: Exim Bank offers advisory services to Indian exporters for facilitating
forward linkage for agri exports. Exim Bank’s international network comprising overseas
office, cooperation partners, correspondent banks and financial institutions is leveraged
to provide export information on:
Overseas markets/market segments.
Direct marketing of product.
Overseas business opportunities.

Information on export/import regulations, finance, etc.
3.3 Export Strategy Formation

There are several ways to evaluate the export potential of your products and services in overseas
markets. The most common approach is to examine the success of your products domestically.
If your company succeeds at selling in the U.S. market, there is a good chance that it will also be
successful in markets abroad, at least those where similar needs and conditions exist.

Another means to assess your company’s potential in exporting is by examining the unique or
important features of your product. If those features are hard to duplicate abroad, then it is
likely that you will be successful overseas. A unique product may have little competition and
demand for it might be quite high.
Finally, your product may have export potential even if there are declining sales in the U.S.
market. Sizeable export markets may still exist, especially if the product once did well in the
United States but is now losing market share to more technically advanced products. Other
countries may not need state-of-the-art technology and/or may be unable to afford the most
sophisticated and expensive products. Such markets may have a surprisingly healthy demand
for U.S. products that are older or considered obsolete by U.S. market standards.

3.3.1 Assessing Your Company’s Export Readiness

Answering these general questions about how exporting will enhance into your company’s
short, medium and long-term goals will help determine your company’s readiness to export:

What does the company want to gain from exporting?
Is exporting consistent with other company goals?
What demands will exporting place on the company’s key resources, management and
personnel, production capacity, and finance and how will these demands be met?

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