India Exim Bank Empowers Indian Businesses for Global Trade Growth

By Atif Gavakhadkar --
Thursday, 19 Oct, 2023

Import Bank of India, also known as India Exim Bank, is determined to help Indian businesses expand their exports to new markets and support existing ones to grow, even in challenging times due to economic slowdown and geopolitical issues. A senior official from the bank mentioned that they are not worried about their dealings with Canada at the moment, and the government is closely monitoring the situation.

The bank's main focus is on making it easier for Indian businesses to trade with other countries. They aim to encourage exports to new markets and help existing markets to prosper. According to Tarun Sharma, the Deputy Managing Director of India Exim Bank, they believe that the government is taking the necessary steps to address the current issues, and they haven't received any negative feedback from the companies they support in their trade and investment activities with Canada.

When discussing their strategy, Sharma explained that they are concentrating on emerging markets, such as those in Africa, Latin America, and South Asia, to boost exports. They are also looking to GIFT City's new subsidiary to facilitate international transactions.

India Exim Bank had predicted a 4.8?crease in India's merchandise exports during the second quarter of FY24 (July-September), mainly due to sluggish trade in certain major partner countries, including advanced economies.

Under their Trade Assistance Programme (TAP), the bank supports trade activities by enhancing the capabilities of Indian banks and financial institutions to handle cross-border transactions, especially in markets with limited trade opportunities.

Sharma stated that they have supported more than 275 transactions in 30 countries, working with 45 banks in emerging markets. These transactions have covered over three-quarters of a billion dollars, benefiting about 95 Indian companies across various sectors, such as agriculture, automotive, textiles, machinery, and engineering goods.

Sharma also highlighted the role of their new subsidiary, Exim Finserve, located in the international financial services center in GIFT City, Gujarat. This subsidiary will have a long-term impact on supporting India's export growth by offering services like receivables financing, protection against non-payment risk, and receivables management. These services will help exporters maintain a steady cash flow and reduce the risk of not being paid, allowing them to explore new markets.

Despite the challenges, Sharma is optimistic about a 12-15% growth in their loan book and expects a recovery in the third and fourth quarters of the current fiscal year. In 2022-23, their net loan portfolio was Rs 1,34,523 crore, with 80% of it in foreign currency and the remaining 20% in Indian currency.

India Exim Bank Empowers Indian Businesses for Global Trade Growth. Import Bank of India, also known as India Exim Bank, is determined to help Indian businesses expand their exports to new markets and support existing ones to grow, even in challenging times due to economic slowdown and geopolitical issues. A senior official from the bank mentioned that they are not worried about their dealings with Canada at the moment, and the government is closely monitoring the situation.

The bank's main focus is on making it easier for Indian businesses to trade with other countries. They aim to encourage exports to new markets and help existing markets to prosper. According to Tarun Sharma, the Deputy Managing Director of India Exim Bank, they believe that the government is taking the necessary steps to address the current issues, and they haven't received any negative feedback from the companies they support in their trade and investment activities with Canada.

When discussing their strategy, Sharma explained that they are concentrating on emerging markets, such as those in Africa, Latin America, and South Asia, to boost exports. They are also looking to GIFT City's new subsidiary to facilitate international transactions.

India Exim Bank had predicted a 4.8?crease in India's merchandise exports during the second quarter of FY24 (July-September), mainly due to sluggish trade in certain major partner countries, including advanced economies.

Under their Trade Assistance Programme (TAP), the bank supports trade activities by enhancing the capabilities of Indian banks and financial institutions to handle cross-border transactions, especially in markets with limited trade opportunities.

Sharma stated that they have supported more than 275 transactions in 30 countries, working with 45 banks in emerging markets. These transactions have covered over three-quarters of a billion dollars, benefiting about 95 Indian companies across various sectors, such as agriculture, automotive, textiles, machinery, and engineering goods.

Sharma also highlighted the role of their new subsidiary, Exim Finserve, located in the international financial services center in GIFT City, Gujarat. This subsidiary will have a long-term impact on supporting India's export growth by offering services like receivables financing, protection against non-payment risk, and receivables management. These services will help exporters maintain a steady cash flow and reduce the risk of not being paid, allowing them to explore new markets.

Despite the challenges, Sharma is optimistic about a 12-15% growth in their loan book and expects a recovery in the third and fourth quarters of the current fiscal year. In 2022-23, their net loan portfolio was Rs 1,34,523 crore, with 80% of it in foreign currency and the remaining 20% in Indian currency.