NEWS – The Export-Import Bank of India (India Exim Bank) recently inaugurated its East Africa Representative Office in Nairobi, Kenya. This move is part of a strategic plan to expand its global business presence. The primary goal of this initiative is to enhance India’s trade and economic ties with East Africa, a region rich in resources and youthful demographics.

GROWTH IN TRADE BETWEEN INDIA AND EAST AFRICA

Trade relations between India and East Africa have seen significant growth over the past decade:

• In 2013, the trade in goods was valued at USD 9.7 billion.
• By 2022, this figure had risen to USD 12.9 billion.
• India’s exports to East Africa increased from USD 8.6 billion in 2013 to USD 9.4 billion in 2022, indicating a steady improvement in trade relations.

ROLE AND STRATEGIC ACTIVITIES OF INDIA EXIM BANK

India Exim Bank plays a pivotal role in promoting India’s foreign trade and investments:

• It is the principal financial institution for coordinating the financing of exports and imports.
• As part of India’s economic diplomacy, the Bank is instrumental in policy formulation and funding export-oriented projects.
• The Bank has offices in Abidjan, Côte d’Ivoire, and Johannesburg, South Africa, underscoring its commitment to strengthening economic ties with Africa.

FACILITATING SOCIO-ECONOMIC GROWTH IN AFRICA

• It has provided over 200 Lines of Credit worth more than USD 12 billion to 42 African countries on behalf of the Indian Government.
• These credits have positively impacted infrastructure development, job creation, agriculture, industry, and long-term growth.
• The initiatives create substantial opportunities for businesses, particularly small and medium-sized enterprises (SMEs) in both Africa and India, fostering employment across various sectors.

MORE ABOUT EXPORT-IMPORT BANK OF INDIA

Establishment and Role

• The Export-Import Bank of India (Exim Bank) was established in 1982 under the Export-Import Bank of India Act.
• Its primary objective is to promote Indian exports by providing financial assistance.
• Headquartered in Mumbai, Exim Bank serves as the main financial institution for coordinating the financing of exports and imports.

Financial Services and Products

• Exim Bank offers loans to Indian exporters and foreign governments for infrastructure projects.
• It facilitates buyer’s credit and extends lines of credit to enable foreign governments to finance imports from India.
• Key financial products include Buyer’s Credit under the National Export Insurance Account (NEIA), Overseas Investment Finance, and Export Credit.