The Export-Import Bank of India (EXIM Bank) was established by the Government of India under the Export-Import Bank of India Act, 1981 with the objective of promoting, financing, and facilitating India’s international trade. The legislation was introduced in Parliament by the then Finance Minister, Pranab Mukherjee. After being passed by both Houses of Parliament and receiving the assent of the President of India, the Act came into force, leading to the establishment of EXIM Bank on 1 January 1982. The first Chairman and Managing Director of the bank was R. S. Rathore.
The creation of EXIM Bank marked an important milestone in India’s trade and financial sector. It was established as a specialized institution dedicated exclusively to supporting exports, imports, and overseas investments. The bank assumed many of the export financing functions that were previously handled by the Reserve Bank of India and became the country’s principal export credit agency.
Growth and Development
In 1983, EXIM Bank expanded its international presence by opening its first overseas representative office in London. This helped the bank strengthen its engagement with global financial markets and support Indian exporters operating internationally.
In 1985, the bank began extending Lines of Credit (LoCs) to foreign governments and institutions. These credit facilities enabled overseas buyers to import Indian goods and services on attractive financing terms, thereby boosting India’s exports and strengthening economic relations with partner countries.
To support small and medium-sized exporters, EXIM Bank established an Export Development Fund in 1991. The fund was designed to assist Indian SMEs in enhancing their export capabilities and accessing international markets.
In 1992, the bank introduced its Buyer’s Credit Programme, which provides financing directly to overseas buyers purchasing Indian goods and services. This initiative improved the competitiveness of Indian exporters by making their products more attractive in international markets.
In 1994, EXIM Bank entered into a partnership with the African Development Bank to establish the India-Africa Fund, aimed at promoting trade, investment, and economic cooperation between India and African countries.
Recognizing the growing global ambitions of Indian companies, EXIM Bank established the India Development Fund in 1999. The fund was created to provide equity and quasi-equity support to Indian enterprises investing abroad and undertaking international expansion projects.
In 2003, the bank launched the Rural Initiative for Supporting Entrepreneurship (RISE) programme to encourage entrepreneurship and business development in rural India. This initiative sought to create employment opportunities and support rural economic growth.
Further strengthening India’s engagement with Africa, EXIM Bank launched the India-Africa Trade and Investment Promotion Programme in 2007. The programme aimed to facilitate greater trade, investment, and business collaboration between India and African nations.
In 2011, the bank introduced the Project Development and Monitoring Facility, which provides advisory and project development services to Indian companies investing overseas. This initiative helped Indian businesses manage international projects more effectively and reduce investment risks.
In 2015, EXIM Bank signed an agreement with the Development Bank of Southern Africa to establish the India-South Africa Development Partnership Fund. The fund was created to support development projects and strengthen economic cooperation between the two countries.
In 2020, EXIM Bank launched the Global Network Programme to expand its international footprint and provide enhanced support to Indian companies operating abroad. The programme aimed to improve access to global markets, strengthen overseas partnerships, and facilitate cross-border investments.
Continuing its international expansion, EXIM Bank opened a representative office in Nairobi in 2024, reinforcing its commitment to supporting India’s growing trade and investment relations with African countries.
Significance
Since its establishment in 1982, EXIM Bank has evolved into India’s premier export finance institution. Through export credit, overseas investment financing, lines of credit, advisory services, and development initiatives, the bank has played a pivotal role in promoting India’s international trade, supporting Indian businesses abroad, and strengthening the country’s economic partnerships across the world. Today, EXIM Bank remains a key institution in advancing India’s global trade and investment objectives.