A Study of Export Import Bank of India in the Export Promotion

Abstract

The Export Import Bank of India was established in the year 1982 as the major financial institution to promote and facilitate India's foreign trade. The establishment of this bank marks a significant shift in government policies of focusing on exports and improve India's position in the global market. The bank provides finance to exporters, importers and various guarantees including risk mitigation to help exporters face global competition.

Present research paper elaborates the role of EXIM Bank in export promotion of the country. Research is based on the available published data including Exim Bank's annual reports.

Findings of the research revealed that the net loan portfolio of the bank has increased rapidly from Rs. 994 billion in 2019-20 to Rs. 1576 billion in 2023-24. The non-fund portfolio of the bank varied between Rs. 142 billion (Lowest) to Rs. 170 billion highest during 2019-2024.

The net investment of the bank also fluctuated between Rs 100 billion and Rs 170 billion. Bank borrowings have jumped from Rs 1052 billion to Rs 1546 billion. Total business of the bank has increased significantly from Rs 2313 billion to Rs 3442 billion.

Thus, increased borrowing & higher business of the bank indicates that bank has contributed significantly to the needs of exporters. However, despite the positive role of Exim Bank, India's share in global trade has remained less than two percent and the trade balance has remained negative over the years. This due to higher imports and lower exports, so to solve this problem the responsibility is of all stakeholders such as industry, government, financial institutions.