Role Of Exim Bank Growth Of Foreign Trade Economics Essay

Introduction of Industry

As we know that the ministry of commercialism and Industry is the most of import organ concerned with the publicity and ordinance of foreign trade in India. The Ministry has an luxuriant organizational set up to look after the assorted facets of trade. Its two of import offices concerned with trade are the ‘Directorate General of Foreign Trade ( DGFT ) ‘ and the ‘Directorate General of Commercial Intelligence and Statistics ( DGCI & A ; S ) ‘ . DGFT is responsible for implementing the Foreign Trade Policy/Exim Policy with the chief aim of advancing Indian exports. It besides issues licences to exporters and proctors their corresponding duties through a web of regional offices. DGCI & A ; S is entrusted with the work of roll uping, roll uping and publishing/ circulating trade statistics and assorted types of commercial information required by the policy shapers, research workers, importers, exporters, bargainers every bit good as abroad purchasers.

Directorate of Industries & A ; Commerce is charged with the duties of easing industrial growing in the state by supplying support for Infrastructure in the signifier of industrial estates, inducements for capital Investment and other subsidies. It provides the enterpriser, power, land and H2O, besides countenance of financial inducements.

Foreign trade has played a important function in India ‘s economic system growing. The composing and way of India ‘s foreign trade has undergone significant alterations, peculiarly, after the liberalisation procedure which began in the early 1990s. Our major exports now includes fabricating goods such as Engineering Goods, Petroleum Products, Chemicals & A ; Related Products, Gems & A ; Jewellery, Textiles, Electronic Goods, etc. which constitute over 80 per cent of our export basket. On the other manus, major import points constitute capital goods and intermediates which non merely back up the fabrication sector but besides provide raw-materials for the export oriented units. Over the old ages, India ‘s trade with states of Asia & A ; ASEAN and Africa has gone up well. Apart from that, India is now a major participant in planetary trading system and all the major sectors of Indian economic system are linked to universe outside either straight or indirectly through international trade.

Introduction of Topic

Exim Bank ( India )

Exim Bank ( full name: The Export-Import Bank of India ) is an Indian government-owned fiscal establishment for the populace sector created by an Act of the Parliament of India: the Export-Import Bank of India Act 1981. Exim Bank is managed by a Board of Directors, which has representatives from the Government, Reserve Bank of India, Export Credit Guarantee Corporation of India ( ECGC ) , a fiscal establishment, public sector Bankss, and the concern community. The Bank ‘s maps are segmented into several runing groups including: Corporate Banking Group which handles a assortment of funding programmes for Export Oriented Units ( eous ) , Importers, and abroad investing by Indian companies.

Undertaking Finance / Trade Finance Group handles the full scope of export recognition services such as provider ‘s recognition, pre-shipment recognition, purchaser ‘s recognition, finance for export of undertakings & A ; consultancy services, warrants, give uping, etc. Lines of Credit Group Lines of Credit ( LOC ) is a funding mechanism and export minutess in the agricultural sector for funding. Small and Medium Enterprises Group to the particular funding demands of export oriented smes. The group handles recognition proposals from smes under assorted imparting programmes of the Bank. Export Services Group offers assortment of consultative and value-added information services aimed at investing publicity Fee based Export Marketing Services Bank offers aid to Corporate Affairs.

Service Category

Government to Business ( G2B )

Service Title

Export Import Data Bank

Service State/Ministry

Ministry of Commerce and Industry

Service Description

One will acquire the Trade statistics – both import and export inside informations

Service Language

English

Minister of Commerce and Industry

Shri Anand Sharma

It is set up by an act of parliament in September 1981

Wholly owned by authorities of India

Commenced operations in March 1982

Apex fiscal establishment

Aims:

“ aˆ¦ for supplying fiscal aid to exporters and importers, and for working as the chief fiscal establishment for organizing the working of establishments engaged in funding export and import of goods and services with a position to advancing the state ‘s international tradeaˆ¦ ” “ aˆ¦ shall move on concern rules with due respect to public involvement ”

Exim Policy Facilities

The bing export publicity strategies such as Export Promotion Capital Goods Scheme, Duty Exemption and Remission Scheme, Scheme for Gems and Jewellery Exports, EHTP and SEZ Schemes have been farther strengthened and simplified. The assorted relaxations provided under the above Schemes are given below

Export Promotion Capital Goods Scheme ( EPCG )

Duty Exemption and Remission Scheme

Gems and Jewellery Exports

Particular Economic Zones

Electronic Hardware Technology Parks

Other Facilities

Chemicals and Pharmaceuticals

Undertakings

Strategic Package for Status Holders

Neutralizing high fuel costs

Diversification of markets

North Eastern States, Sikkim and Jammu & A ; Kashmir

Re-location of industries

Decrease in dealing clip & A ; cost

BANK ‘S FUNCTIONS

The Bank ‘s maps are segmented into several runing groups including:

Corporate Banking Group which handles a assortment of funding programmes for Export Oriented Units ( EOUs ) , Importers, and abroad investing by Indian companies. Undertaking Finance / Trade Finance Group handles the full scope of export recognition services such as provider ‘s recognition, pre-shipment recognition, purchaser ‘s recognition, finance for export of undertakings & A ; consultancy services, warrants, forfaiting etc.

Lines of Credit Group Lines of Credit ( LOC ) is a funding mechanism that provides a safe manner of non-recourse funding option to Indian exporters, particularly to SMEs, and serves as an effectual market entry tool.

Agriculture Business Group, to spearhead the enterprise to advance and back up Agri-exports. The Group handles undertakings and export minutess in the agricultural sector for funding.

Small and Medium Enterprises Group to the particular funding demands of export oriented SMEs. The group handles recognition proposals from SMEs under assorted imparting programmes of the Bank.

Export Services Group offers assortment of consultative and value-added information services aimed at investing publicity Fee based Export Marketing Services Bank offers aid to Indian companies, to enable them set up their merchandises in abroad markets.

Besides these, the Support Services groups, which include: Research & A ; Planning, Corporate Finance, Loan Recovery, Internal Audit, Management Information Services, Information Technology, Legal, Human Resources Management and Corporate personal businesss.

RESEARCH METHODOLOGY

Generally research is considered as an enterprise to get at the reply to rational and practical job through the application of scientific method to the acknowledge existence. It is motion from known to unknown.

My research based on the secondary resources. The informations taken from the different web sites ( Indian govt. , Exim bank policy, Foreign trade ) .

Reappraisal of Literature

India ‘s export public presentation /April-august, 2004-05/ Nimmala Amharic- In this article that author have a research on the subject of India ‘s export public presentation. And he found in his research that Indian ‘s foreign trade are increasing twelvemonth by twelvemonth in both regard of export and import. But entire trade shortage is a large job of Indian economic system. And he besides find in their research that some of the sector has grew in footings of export such as Cars, Gems & A ; Jewellery, and Textiles.

Aim

To cognize the Role of EXIM Bank in the growing of Foreign Trade.

To cognize the assorted services provided by the EXIM Bankss which support in foreign trade

Data And Facts

Entire Trade of Exports and Imports over the Old ages in Crore Rupees

Year

Exports

Imports

Entire Trade

Trade Deficit

1990-91

32558

43193

75751

-10635

1991-92

44042

47851

91893

-3809

1992-93

53688

63375

117063

-9687

1993-94

69751

73101

142852

-3350

1994-95

82674

89971

172645

-7297

1995-96

106353

122678

229031

-16325

1996-97

118817

138920

257737

-20103

1997-98

130101

154176

284277

-24075

1998-99

139753

178332

318085

-38579

1999-2000

159561

215236

374797

-55675

2000-01

209018

230873

434444

-27302

2001-02

255137

245200

454218

-36182

2002-03

293367

297206

552343

-42069

2003-04

375340

359108

652475

-65741

2004-05

375340

501065

876405

-125725

2005-06

456483

635013

1091496

-178530

2006-07

571779

840506

1412286

-268727

2007-08

655864

1012312

1668176

-356448

2008-09 ( P )

766935

1385503

2072338

-538568

External Trade with Other Countries during 2007-08 and 2008-09

Region

Exports ( April-Feb )

Imports ( April-Feb )

A

A

2007-08

2008-09 ( P )

2007-08 ( P )

2008-09 ( P )

A

1. Europe

1,33,151

1,65,925

1,75,335

2,23,813

1.1 EU states 27

1,23,219

1,55,266

1,27,315

1,61,593

1.2 Other WE states

9,553

10,123

47,881

62,115

1.3 East Europe

379

536

138

106

2. Africa

38,062

44,922

51,519

60,151

2.1 Southern Africa

13,058

12,393

17,868

29,377

2.2 West Africa

12,851

13,204

35,614

48,514

2.3 Central Africa

934

1,372

189

632

2.4 East Africa

15,126

18,687

1,158

1,158

3. America

98,900

1,14,966

79,780

1,21,381

3.1 North America

79,880

89,476

56,281

80,825

3.2 Latin America

10,019

45,490

23,498

40,556

4. Asia and Asean

2,96,287

3,57,982

5,43,551

7,39,622

4.1 East Asia

5,070

6,719

30,783

40,230

4.2 ASEAN

56,663

75,357

82,289

1,06,418

4.3 WANA

1,08,920

1,44,039

2,58,645

3,56,716

4.4 NE Asia

92,974

96,846

1,64,030

2,28,746

4.5 South Asia

32,659

35,020

7,805

7,513

5. CIS & A ; Baltic seas

6,101

7,623

14,238

28,793

5.1 autos Countries

826

1,047

419

1,157

5.2 Other CIS States

5,275

6,577

13,818

27,636

6. Unspecified Region

1,482

4,346

2,666

4,710

Entire

5,77,889

6,96,498

8,70,399

11,98,360

EXPORT CREDITS

EXIM LINES OF CREDIT ( LOC )

The chief function of Exim bank in foreign trade is to give recognition installations. Exim Bank extends Lines of Credit ( LOC ) to abroad fiscal establishments, regional development Bankss, autonomous authoritiess and other entities overseas, to enable purchasers in those states, to import goods and services from India on deferred recognition footings. The Indian exporters can obtain payment of eligible value from Exim Bank, without resort to them, against dialogue of transporting paperss. LOC is a funding mechanism that provides a safe manner of non-recourse funding option to Indian exporters, particularly to SMEs, and serves as an effectual market entry tool. Exim Bank extends LOC, on its ain, every bit good as, at the behest of Government of India. Exim Bank offers the following Export Credit installations, which can be availed of by Indian companies, commercial Bankss and abroad entities:

For Indian Companies put to deathing contracts overseas

for commercial Banks

Other Facilities for Indian Companies

For Overseas Entities

For Indian Companies put to deathing contracts overseas

Pre-shipment recognition

Exim Bank ‘s Pre-shipment Credit installation, in Indian Rupees and foreign currency, provides entree to finance at the fabrication phase – enabling exporters to buy natural stuffs and other inputs.

Supplier ‘s Recognition

This installation enables Indian exporters to widen term recognition to importers ( abroad ) of eligible goods at the post-shipment phase.

For Project Exporters

Indian undertaking exporters incur Rupee outgo while put to deathing overseas project export contracts i.e. Costss of mobilization/acquisition of stuffs, forces and equipment etc. Exim Bank ‘s installation helps them run into these disbursals.

For Exporters of Consultancy and Technological Servicess

Exim Bank offers a particular recognition installation to Indian exporters of consultancy and engineering services, so that they can, in bend, extend term recognition to abroad importers

Guarantee Facilities

Indian companies can avail of these to supply needed warrants to ease executing of export contracts and import minutess.

How does it work?

Exim Bank marks LOC Agreement with abroad Borrower Institution ( Borrower ) and announces the handiness of LOC for use, when the Agreement becomes effectual.

Exporter cheques with Exim Bank, available sum under the LOC and quantum of service fee collectible to Exim Bank, if any, and negotiates contract with Importer.

Importer approaches the Borrower for blessing of the contract.

Borrower appraises the proposal. If satisfied, approves the contract and refers to Exim Bank for concurrency for inclusion of contract for being financed under the LOC.

Exim Bank agreements blessing to the contract, if in conformance with the footings of LOC. Exim Bank conveys contract blessing to the exporter and the Borrower.

The Importer arranges remittal of beforehand payment to the Exporter and besides gap of a Letter of Credit, which states that the contract is covered under Exim Bank ‘s LOC to the Borrower and reimbursement will be by Exim Bank for the Eligible Value of Credit, upon conformity with stipulated conditions therein.

Exporter executes the contract/ships the goods/provides services.

Exim Bank/commercial bank in India, designated as the Negotiating Bank negotiates transporting paperss and pays the exporter.

Exim Bank reimburses the Negotiating Bank, on reception of valid claim and service fee, as applicable, by debit to the LOC history of the Borrower.

Borrower repays Exim Bank on due day of the months.

Exim Bank marks understanding with Borrower and announces when effectual.

Exporter cheques processs and service fee collectible, if any, with Exim Bank and negotiates contract with Importer.

Importer consults Borrower and marks contract with exporter.

Borrower approves contract.

Exim Bank approves contract and advises Borrower and besides exporter and his negociating bank, in India.

Importer establishes L/C in favour of Exporter.

Exporter ships goods.

Exim Bank/commercial bank negotiates transporting paperss and wages exporter.

EXIM Bank reimburses commercial bank on reception of claim and debits LOC history of the Borrower.

Borrower repays EXIM Bank on due day of the months.

Lending Programme for Export Oriented Unit of measurements

To make and heighten export capablenesss of Indian companies.it provide them Term loans in Indian rupees/ foreign currency, Deferred Payment Guarantee for import of capital goods. And in topographic point of that they charged minimal Bank ‘s loaning rate and 1 % of loan sum collectible upfront as service charged they provide this installation to following eligible company:

Unit of measurements set up/proposed to be set up in Export Processing Zones

Unit of measurements under the 100 % Export Oriented Units Scheme

Unit of measurements importing capital goods under Export Promotion Capital Goods Scheme

Unit of measurements set abouting enlargement /modernization /up step /diversification plans of bing export oriented units with export orientation of minimal 10 % or gross revenues of Rs.5 crores per annum whichever is lower

Lending Programme for Overseas Joint Ventures/Wholly Owned Subsidiaries by Indian Companies-

To finance by manner of equity loan to Indian companies for puting up of abroad articulation ventures/ entirely owned subordinates

Eligible Companies

Any Indian booster doing equity investing in an bing company or a new undertaking overseas with the needed blessing for such investing from the Reserve Bank of India ( RBI ) /Government of India as besides from the authorities and other concerned governments in the host state

The entire value of the investing by the Indian company does non transcend US $ 15 million in regard of Indian investing in SAARC states and Myanmar entire value of investing does non transcend US $ 30 million ; and in regard of Indian Rupee investing in Nepal and Bhutan, entire value of investing does non transcend Rs.120 crores

The sum of investing is up to 25 % of one-year mean export net incomes of the company in the preceding three old ages

The sum of investing is repatriated in to the full by manner of dividends, royalty, proficient service fees, etc. Within a period of five old ages.

Refinance to Commercial Banks

Exim Bank provides 100 % refinance to commercial Bankss in regard of rupee term loans extended by them to Indian Promoter Company for equity part in abroad JV/WOS. As per predominating RBI guidelines, commercial Bankss can see loan for equity investing merely under Exim Bank ‘s Refinance strategy.

Equity Investment in Indian Ventures Abroad

To catalyse abroad investing by Indian companies to heighten visibleness of Indian abroad ventures.

Quantum of Exim Bank ‘s equity engagement

Upton 25 % of equity capital of the junior varsity affecting Indian & A ; foreign companies

Upton 50 % of equity capital in instance of entirely owned subordinates of Indian companies

Capable to a ceiling of US $ 5 MN per proposal and take topic to RBI

Investing Standards

While sing equity investing with Indian companies concern in India, weightage will be giving to the followers:

Background and path record of Indian and foreign boosters

Synergy of abroad operations with concern in India

Fiscal viability and proficient feasibleness

Tax return on Exim ‘s investing

Benefits to India in footings of trade sweetening, engineering transportation, and foreign exchange net incomes etc.

Spin off benefits such as trade name selling and incursion of new markets will besides be considered

Asiatic Countries Investment Partners Programme ( ACIP )

To advance joint ventures in India between Indian companies & A ; companies from Asiatic states through four installations that address different phases of the undertaking rhythm. ACIP seeks to catalyse investing flows into India by creative activity of Joint Ventures in India between Indian companies and companies from East Asiatic states. ACIP is proposed to be a support instrument supplying finance at assorted phases of a Joint Venture undertaking rhythm viz. Sector survey, undertaking designation, feasibleness survey, paradigm development, puting up undertaking and proficient, managerial aid.

Export Marketing Finance Programme

To make and heighten export capablenesss and international fight of Indian companies. Under the loaning programme for Export Marketing Finance, the Bank addresses the term finance demands for a structural and strategic export selling and development attempt of Indian companies

Eligible Companies

Company who have a strategic international selling program.

Company should hold established presence in the domestic market

Company should hold satisfactory financials.

Interest Ratess

Rupee Term Loans – Linked to Exim Bank ‘s Minimum Lending Rate

Foreign Currency Term Loans – At drifting or fixed involvement rates

Additionally involvement revenue enhancement is applicable will be collectible

Service Fee

1 % of loan sum sanctioned, collectible upfront & amp ; non-refundable

Export Product Development Programme

To back up systematic export merchandise development programs with focal point on industrialised markets

Eligible Companies

Established exporting endeavors with merchandise development programme dedicated to export

The company must besides hold an established path record and satisfactory financials

Programme for Financing Export Vendor Development ( EVD )

Aim

To finance export strategic seller development programs for export companies with a position to heightening exports through creative activity, beef uping of backward linkages with sellers.

Eligible Companies

Export companies and Trading Houses

Manufacturer-exporters with satisfactory path record and financials, Li & gt ; Companies with strategic program for seller development for exports are eligible to seek finance under this programme

Companies buying from sellers finished, semi-finished or intermediate merchandises with the exporter adding value to the merchandise in the signifier of farther processing or selling them

Interest Rate

Interest Rate linked to Bank ‘s Minimum Lending Rate

Soft loan at 7.5 % p.a. ( capable to alter ) topic to upper limit of Rs.50 hundred thousand

Repayment Time period

Upton 7 old ages

Programme for Export Facilitation

Exim Bank offers term finance and non-funded installations to Indian corporates to make substructure installations to ease India ‘s international trade & A ; thereby heighten their export capableness.

Foreign Currency Pre-Shipment Credit ( FCPC )

Under this programme, short-run foreign currency finance is available to eligible exporters for funding inputs for export production such as natural stuffs, constituents and consumables. The finance is repayable in foreign currency from returns of the comparative exports.

FCPC programme represents another support beginning to the exporter for spread outing export volumes, peculiarly of manufactured and value added goods. It eliminates bipartisan exchange transition costs and exchange hazard, therefore heightening export fight. FCPC can be a cost effectual support beginning as compared to rupee export recognition every bit good as abroad provider ‘s recognition depending on market conditions for loans under FCPC. Equally far as commercial Bankss are concerned, loans availed of from Exim Bank are exempt from Cash Reserve Ratio, Statutory Liquidity Ratio and Incremental Credit-Deposit Ratio demands.

Eligible Borrowers

Exporting companies

Commercial Banks for on loaning to exporting clients

Working Capital Term Loan Programme for Export Oriented Units ( WCTL )

WCTL programme seeks to make, heighten export capablenesss of Indian companies. Under the Programme, the Bank addresses the on the job capital ( loan constituent ) demands of export oriented units.

Eligible Companies

Unit of measurements set up/proposed to be set up in Export Processing Zones

Unit of measurements under the 100 % Export Oriented Units Scheme

Unit of measurements importing capital goods under Export Promotion Capital Goods Scheme

Unit of measurements set abouting enlargement /modernization /up gradation/diversification plans of bing export oriented units with export orientation of 10 % of gross revenues or export gross revenues of Rs.5 crores per annum whichever is lower.

Bulk Import Finance Programme ( BIF )

In this service they provide short term working capital finance to fabricating companies to extra consumable inputs. Under the programme, BIF is offered for import of eligible points with a minimal order size of Rs.1 crores.And they provided the Short term loans in Indian Rupees and/or Foreign currency.

Programme for Financing Research & A ; Development

To supply incorporate funding for Research & A ; Development activities by export oriented companies

Exim Bank ‘s finance available to

Financially sound companies with a minimal export orientation of 20 % of their net gross revenues for the undermentioned eligible activities and eligible outgo.

Eligible R & A ; D Activities Eligible R & A ; D Outgo

Development and commercialisation of new merchandise / procedure / application.

Significant betterments in bing merchandise / procedure / application/ design.

Development of engineering or design to fulfill domestic or international environment, proficient requirements/ criterions, specifications.

Puting up, enlargement of pilot workss.

Finance FOR EXPORT ORIENTED UNITS

Term Finance

Undertaking Finance

Equipment Finance

Import of Technology & A ; Related Servicess

Domestic Acquisitions of businesses/companies/brands

Export Product Development/ Research & A ; Development

General Corporate Finance

Working Capital Finance ( For Exporting Companies )

Funded

Working Capital Term Loans [ & lt ; 2 old ages ]

Long Term Working Capital [ up to 5 old ages ]

Export Bills Discounting

Export Packing Credit

Cash Flow funding

Non-Funded

Letter of Credit Limits

Guarantee Limits

Export Finance

Pre-shipment Recognition

Post Shipment Credit

Buyers ‘ Recognition

Suppliers ‘ Credit [ including deferred payment recognition ]

Bills Dismissing

Export Receivables Financing

Warehousing Finance

Export Lines of Credit ( Non-recourse finance )

Datas analysis

As we know that India ‘s entire external trade ( exports plus imports including re-exports ) in the twelvemonth 1990-91 stood at Rs. 91,893 crore. Since so, this has witnessed uninterrupted addition with occasional downswings. During 2008-09 the value of India ‘s external trade reached Rs. 20, 72,438 crore. A statement bespeaking India ‘s entire export, import, entire value of foreign trade and balance of trade from the twelvemonth 1991-92 to 2008-09, in rupee footings, is given in table above.

India ‘s exports during 2008-09 reached a degree of Rs. 7, 66,935 crore registering a growing of 16.9 per cent. In US $ footings, exports reached a degree of US $ 168.7 billion, registering a growing of 3.5 per cent as compared to a growing of 29.1 per cent during the old twelvemonth. The growing of exports during the twelvemonth has exhibited a important slow-down from September 2008 onwards. While, during the first half of the twelvemonth 2008-09, April-September, exports increased by 31.3 per cent with about all the major trade good groups, except increased by 31.3 per cent with about all the major trade good groups, except Marine merchandises, handcrafts and rugs, entering important growing. In the 2nd half of the twelvemonth 2008-09, October-March, exports recorded a diminution of ( – ) 19.2 per cent with about all the trade good groups entering important negative growing.

During 2008-09 imports increased to Rs. 13,05,503 from the degree of Rs. 10,12,312 crore in 2007-08 registering growing of 29.0 per cent in rupee footings. In US $ footings, imports reached a degree of US $ 287.8 billion in 2008-09 registering a growing of 14.4 per cent. Oil imports were valued at US $ 93.2 billion, which was higher by 16.9 per cent over the old twelvemonth. Non-Oil imports increased to US $ 194.6 billion, which was higher by 13.2 per cent. Items which registered important growing are Pearl, Precious & A ; Semi-Precious Rocks, Crude & A ; Manufactured Fertilizer, Coal, Inorganic Chemicals, Project Goods, etc. Import of Gold and Transport Equipment registered important diminution.

The Trade shortage during 2008-09 increased to Rs. ( – ) 538568 crore as against Rs. ( – ) 356449 crore during 2007-08. In US $ footings, trade shortage increased to US & A ; 119.1 billion from a degree of US & A ; 88.5 billion during 2007-08.

India has trading dealingss with all the major trading blocks and geographical parts of the universe. Region and sub region-wide spread of India ‘s during 2007-08 and 2008-09 as per information available up to 2008-09 ( April-February ) is given in table 7.2. During the period 2008-09 ( April-February ) , the portion of Asia and ASEAN part consisting South Asia, East Asia, and Mid-Eastern and Gulf states accounted for 51.4 per cent of India ‘s entire exports. The portion of Europe and America in India ‘s exports stood at 23.8 per cent and 16.5 per cent respectively of which EU states ( 27 ) comprises 22.3 per cent. During the period, USA ( 12.0 per cent ) , has been the most of import state of export finish following by United Arab Emirates ( 10.8 per cent ) , China ( 5.1 per cent ) , Singapore ( 4.7 per cent ) , Netherlands ( 3.7 per cent ) , Hong Kong ( 3.7 per cent ) , U.K. ( 3.6 per cent ) , Germany ( 3.4 per cent ) , Saudi Arabia ( 3.0 per cent ) , Belgium ( 2.6 per cent ) and Italy ( 2.2 per cent ) .

Asia and ASEAN accounted for 61.7 per cent of India ‘s entire imports during the period followed by Europe ( 18.7 per cent ) and America ( 10.1 per cent ) . Among single states the portion of China stood highest at ( 10.7 per cent ) followed by Saudi Arabia ( 7.1 per cent ) , UAE ( 6.4 per cent ) and USA ( 6.0 per cent ) , Iran ( 4.3 per centum ) , Switzerland ( 4.2 per cent ) , Germany ( 3.6 per cent ) , Kuwait ( 3.4 per cent ) , Nigeria ( 3.2 per cent ) , and Iraq ( 2.8 per cent )

Decision

As we describe above the assorted maps and function of the Exim Bank. Than we can state that it handles a assortment of funding plans for Export Oriented Units ( EOUs ) , Importers, and abroad investing by Indian companies. We find that the foreign trade has increased after Exim Bank ‘s entry. And it support assorted sorts of activities in export import process. Undertaking Finance / Trade Finance Group handles the full scope of export recognition services such as provider ‘s recognition, pre-shipment recognition, purchaser ‘s recognition, finance for export of undertakings & A ; consultancy services, warrants, forfaiting etc. Its export Services Group offers assortment of consultative and value-added information services aimed at investing publicity Fee based Export Marketing Services Bank offers aid to Indian companies, to enable them set up their merchandises in abroad markets.

Besides these, the Support Services groups, which include: Research & A ; Planning, Corporate Finance, Loan Recovery, Internal Audit, Management Information Services, Information Technology, Legal, Human Resources Management and Corporate Affairs. Thus we can state that it plays an of import function in the foreign trade.