Introduction
We can define the Export and Import Bank of India as a banking institution established to facilitate, fund, and promote India's foreign trade. The Indian Republic established the bank under the Export-Import Act of 1982. The fundamental Exim meaning is that it is the supervision institution of export credit and mirrors global Export Credit Agencies. It serves as the galvanizing mechanism for industries, Small and Medium Enterprises (SMEs), and other export-oriented units (EOUs). Exim bank offers a range of assistance to Indian exporters via technological import, export product development, export marketing, financial help, pre-shipment and post-shipping, and overseas investment. If you are interested to know more about the Exim meaning, then read ahead.
Exim Meaning
To begin with, the Exim full form is the Export and Import Bank of India. The bank extends Lines of Credits (LOCs) to international financial institutions, regional development banks, sovereign governments, and other overseas entities to enable buyers to import developmental and infrastructure projects, types of equipment, and goods and services from those nations India on deferred credit terms. It is noteworthy to highlight that during 2020, Exim Bank had sanctioned loans valued at more than INR 40000 crore, whereas disbursements amounted to INR 30000 plus crore. The Loan Assets of the institution was INR 99000 crore as of 31st March 2020. Now that we have touched upon the basics of Exim bank, including Exim full form, let us dive deeper into the subject.
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Exim Policy of India
The Exim (Export-Import) Policy of India, also known as the Foreign Trade Policy (FTP) of the country, is the primordial policy that lays down transparent and straightforward rules for the efficient management of foreign trade in India. The policy is regulated by the Foreign Trade Development and Regulation Act, 1992, and the presiding body for the policy is the Directorate General of Foreign Trade (DGFT). Exim India policy aims at improving the country's trade for economic acceleration and employment creation. The Customs Tariff Act and the Central Excise Act are two other similar acts that put forth how the Customs and Excise duties shall be levied on trade.
Goals of Exim Policy
The various objectives of Exim policy of India are :
The first goal of the Exim policy is to promote continued development in exports to attain a share of at least 1 percent of international merchandise trade.
Exim policy encourages stable economic expansion by providing exporters access to essential capital goods, raw materials, intermediate products, consumables, installations, and other elements.
The policy also aims to improve the technical competency and productivity of Indian agriculture, Indian companies, and other services to facilitate their competitive power, enlarge the employment scope, foster global accomplishments, and achieve internally accepted quality standards.
Another objective of the Exim policy has been to supply consumers with fine goods and services at globally competitive prices and fashion a level playing field within the domestic market.
Now that we have laid down the various goals of the Exim policy, let us look at other nitty-gritties of Exim bank.
Role of Exim Bank
The central role of the Export and Import Bank of India or the Exim Bank is to provide monetary assistance and other services to Indian exporters. Help is given to export-oriented units (EOUs) in the form of loans in Indian rupees or foreign currencies for establishing new production sites, expansion, modernization, or upgradation of existing facilities, and acquiring more contemporary production instrumentation or technology. The bank also extends Buyers' Credit and Suppliers' Credit to finance and promote India's exports. It encapsulates a program known as the Buyer's Credit beneath the National Export Insurance Account (NEIA) to foster future exports from India. Moreover, the Exim bank also promotes hi-tech exports from India vis-à-vis a disposal program to finance the Research and Development (R&D) of EOUs. It also fosters various grassroots initiatives to reach the downtrodden sections of society and offer them growth opportunities. For instance, Exim bank aims to promote the traditional handicrafts of India by calling artisans and rural entrepreneurs to take advantage of the various possibilities of the institution. Lastly, another Exim bank function is to have a robust analysis team that allows exporters to judge international risks, faucet export opportunities, and expand Indian exports. Thus, fostering globalization is a significant concern of the Exim bank.
In conclusion, the topic of Exim bank, including the Exim bank full form, is a massive subject with various facades. But, we can safely assert that the institution is the key player in making India a stakeholder in global trade. Likewise, the institution has been pivotal in strengthening India's export market and disseminating Indian handicrafts to the worldwide market.
FAQs on EXIM Full Form
1. What are the functions of the Exim bank?
Exim bank functions are:
The Exim bank extends immediate monetary assistance to Indian exporters of all kinds through means of medium-term credit.
It assures the stocks, bonds, shares, and debentures of any organization related to exports.
The institution attempts to provide international buyers with credit to overseas importers to import Indian industrial products and services.
The bank tries to create and fund more export-oriented businesses in the country.
Another function of the Exim bank is to accumulate and assemble the market and credit particulars regarding foreign trade.
2. Explain the organization and management of the Exim Bank.
The Exim Bank is administered by a comprehensive board of experts comprising a Chairman, the Managing Director, and 17 other directors with diverse specializations such as banking, finance, commerce, and so forth. The Exim Bank became a part of the economic system of India in 1982, and since then, it has been responsible for the augmentation of Indian exports. It was initially established to take the role of the global finance branch of IDBI – Industrial Development Bank of India. The sanctioned wealth of Exim bank is Rs. 200 crores and the paid-up asset amounts to Rs. 100 crore – entirely endorsed by the Central government.
