Exim Bank of India

Exim Bank of India :

Represents a rare case of an institution where the concept and need for such an institution had been debated for a long period-more than two decades – before it was finally set up in 1982. The two decades prior to the establishment of Exim Bank witnessed significant changes in the industrial and the trade scenario. Indian exports during the fifties and the early sixties consisted of primary commodities and traditional manufactures like jute and cotton textiles. The dominant viewpoint was that in India’s case, expansion in domestic demand alone could realistically serve as the engine for economic growth, since export expansion opportunities were limited and there were fundamental constraints (like inadequate infrastructure) to export growth. The ideology relating to the manufacturing sector was to promote industrialization through import substitution. As a result, the export sector remained neglected with a small share in India’s GDP.
Nevertheless, the process of industrial development in India promoted through the import substitution strategy provided an impetus to the growth of a large and diversified industrial base, particularly the engineering industry. A number of emerging industrial sub-sectors also proved to be internationally competitive. The change in India’s export profile commenced slowly in the sixties with a growing share of non-traditional manufactured goods and value-added products.
During 1978-79, the Ministry of Finance convened meetings to discuss the proposal regarding setting up of an Export-Import Bank. At these meetings, it was agreed that there was a justification for a separate institution on the ground that it would be able to devote concentrated attention to the needs of exporters and explore new methods for augmenting credit on reasonable terms. It could also concern itself with investment finance required for export production.
By 1980, engineering goods exports had grown to constitute 13 per cent of Indian exports. Project exports were also buoyant. The growing demand of project exporters for an Exim Bank, vigorous support from the Ministry of Commerce and increasing emphasis on export promotion combined to push the government into taking a final view. On June 18, 1980, in his budget speech in Parliament, the then Finance Minister, Shri R. Venkataraman, announced the momentous decision to establish an Exim Bank.
Export-Import Bank of India was thus born after two decades of debate on the need for a specialized export credit agency for India and the role of international trade in India’s economic development.

Guiding the export-import businesses of India

Export-Import Bank of India is the premier export finance institution of the country that seeks to build value by integrating foreign trade and investment with the economic rise of India. The Bank has been guided by expertise at the Board level, by senior policy makers, expert bankers, leading players in industry and international trade as well as professionals in exports, imports or financing. With offices spread across India and in select locations of the world, the bank aspires to boost the businesses of industries and SMEs.