exim

Introduction
Exim Bank of India is an apex financial institution fully owned by Government of India, set up for the purpose of financing, promoting and facilitating India's international trade. The Bank is engaged in financing export of projects, products and services from India through number of financing and promotional programmes. The Bank is also involved in creating export capability in small and medium enterprises (SMEs), grassroot rural business enterprises and agro industries. The Bank, over the years, has facilitated number of SMEs to become active players in the global market in sectors like information technology, auto components, pharmaceuticals, textiles and clothings, agro chemicals, etc. Bank, through its overseas investment programme, has supported Indian corporates including SMEs, to set up ventures overseas, acquire business and brands abroad to strengthen their global presence. Thus, Exim Bank over the last 25 years of its existence has gained substantial experience and expertise to guide and support Indian firms to access global market.

Exim Bank's Rural Initiatives
With the advent of globalisation, the barriers to trade are getting dismantled and the dividing line between national and global markets is slowly disappearing. While this phenomenon has resulted in expansion of market opportunities for products and services, it has also made certain sections in developing countries more vulnerable to market vagaries. Thus, the objectives of Exim Bank's rural initiatives are two fold:

i. Poverty reduction through export linkages
ii. Benefit of Globalisation to grassroot rural enterprises.


With the above objectives in mind, Exim Bank has now made its rural initiatives programme as the core to its operations, as depicted in this diagram. While the other financing programmes will give Exim Bank the volume and the return (topline and bottomline), the rural initiatives will enable the Bank to break new ground in the operations of export credit agencies and leverage its expertise in international market to the benefit of rural poor through creation of export capability in rural enterprises. It is also recognised that these initiatives would require disproportionate amount of resources in terms of time and manpower. But, if these initiatives prove successful and give desired results, it has the potential to enhance the purchasing power of the 'bottom of the pyramid' and will have beneficial spin off effects in all sectors of the economy.

Exim Bank's Export Marketing Service
In order to assist SMEs and rural enterprises, Exim Bank has put in place an Export Marketing Service (EMS) programme. Under EMS, Exim Bank undertakes export marketing of good quality products through its own overseas offices, its network partners abroad on 'success fee' basis. The Bank does not charge any upfront fees, but collect 2-3% of the sales value as service fee only if it is successful in securing orders for the products. The Bank has been successful in securing lucrative orders for rural enterprises from USA, UK, Singapore, Dubai and Johannesburg, where the Bank has its own offices.