Tag: exports

Exim Bank targets $7 billion financing of project exports over 5 years, BFSI News, ET BFSI

Banking & Finance

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Export-Import Bank of India (Exim Bank) targets to achieve financing of USD 7 billion of project exports over the next five years with the government announcing fund infusion of Rs 1,650 crore in the National Export Insurance Account (NEIA) to boost project exports. The NEIA Trust, set up by the Ministry of Commerce and Industry, in March 2006, provides export credit insurance cover for promoting medium and long-term project exports from India.

The corpus infusion will enhance the project export possibility having cover by NEIA by about Rs 33,000 crore over the next five years (equivalent to USD 4.5 billion), the bank said in a statement.

“The capital infusion will help tap huge potential of project exports in focus markets. The Bank has currently supported 31 projects valued at USD 2.74 billion in 14 countries under the Buyer’s Credit under NEIA programme,” it said.

The opportunity for Indian exporters remains significant given the fact that the project exporters have already developed substantial competitiveness in several sectors and the financing options provided by Exim Bank are well recognised, it added.



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Exim Bank to tap overseas market by January, BFSI News, ET BFSI

Banking & Finance

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India’s Exim Bank will tap the overseas market to raise $1 billion to fund overseas project finance with demand picking up this year. The recent upward revision will add to investors’ comfort according to Ms Harsha Bangari, MD of the export credit agency.

“On the whole we would require $2 billion for FY22. We may tap the bond market in January again subject to favourable market conditions,” Bangari added. The export credit agency is looking at raising $1 billion.

Exim borrows $2-3 billion annually on average. The exact quantum would depend on demand. “We have already borrowed around $1 billion, mostly on the bilateral market,” Bangari says. Bilateral market borrowing gives the borrower an advantage of 15-20 basis points over bonds in terms of pricing. Exim has factored in a loan book growth of 8-10 per cent for FY22, higher than its earlier forecast of 5-7 per cent made in May 2021.

“A stable outlook gives us a lot of comfort. I hope investor appetite gets much better. We are getting a pricing that is given to a higher rated entity. Besides, Exim would also be borrowing Rs 15,000-20,000 crore from the domestic market.”

Exim Bank is also seeing some improvement in the asset quality. “It is much better than the last two-three years. There are a few accounts that have slipped and are very much in the bank’s radar,” Bangari says. As part of a consortium, the bank has identified nine accounts worth Rs 700-800 crore to be transferred to the National Asset Reconstruction Company (NARCL).

Exim Bank’s slippage ratio improved to 1.52 per cent in FY21 from 1.94 per cent in FY20. Net NPA stood at 0.51 per cent from 1.77 per cent in FY20. Bangari says the provision coverage ratio was at over 95% last year & will be higher this fiscal.

It has received a capital support of Rs 750 crore from the government of India so far, against the budgeted amount of Rs 15,00 crore.



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‘Govt has met 38% of FY22 exports target’, BFSI News, ET BFSI

Personal Finance

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Hyderabad: The government has set an ambitious target of USD $400 billion exports for financial year 2021-22 and 38% of this target has already been achieved by August, said Srikar K Reddy, joint secretary, department of commerce, ministry of commerce and industry, while addressing participants at the CII MSME Summit virtually on Thursday.

Reddy pointed out that the government is keen to provide more market access to Indian companies, specially MSMEs, by inking free trade agreements (FTAs) with certain countries. The government is fast tracking FTAs with countries like UAE, Israel, European Union, UK, Australia and Canada.

On Covid-19’s impact on MSMEs, he said various studies have shown that MSMSE’s were severely impacted and over 90% of them faced challenges pertaining to liquidity, labour, raw materials and logistics.

Sameer Goel, chairman, CII Telangana, said MSMEs play an important role in the overall economic growth and therefore the development of this segment is extremely critical to boost employment.



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MoS Anupriya Patel, BFSI News, ET BFSI

Personal Finance

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NEW DELHI: Union Minister of State for Commerce and Industry Anupriya Patel on Monday said that India is expected to export USD 46 billion to ASEAN in the financial year 2022.

Patel on Monday inaugurated the “India-ASEAN Engineering Partnership Summit” organised by the Engineering Exports Promotion Council (EEPC) with support from the Ministry of External Affairs and the Department of Commerce.

While addressing the inaugural session, Patel said: “As one of the largest destinations for Indian exports, ASEAN will be an important region for India with an export target of USD 46 billion in meeting the global export target of USD 400 billion in the financial year 2021-22.”

“Both India and ASEAN have large share of skilled population, robust service and manufacturing sectors and there are many complementary sectors and products available for greater cooperation. With a combined economy of approx. USD 5.8 trillion, there is significant potential for enhancing trade and investment partnership between India and ASEAN.”

Patel further said that Prime Minister Narendra Modi has set a target of USD 400 billion of merchandise exports for fiscal 2021-22 and also envisioned a roadmap to achieve this milestone.

“As a part of the Atmanirbhar Bharat Abhiyaan, the Central government has recently approved the Production-Linked Incentive (PLI) Scheme worth USD 26 billion covering 13 sectors, including electronics, pharmaceuticals, solar modules, speciality steel, automobiles, and medical devices for attracting investment and enhancing India’s manufacturing capabilities,” she said.

Supported by the Ministry of Commerce and Industry and Ministry of External Affairs, the four-day India-ASEAN Engineering Partnership Summit is expected to see the participation of over 300 delegates from the Indian industry. A sizable number of delegates from ASEAN countries will also join the summit. The summit will also cover B2B meetings and interactions. The thematic sessions will cover a range of topics including country sessions, and emerging areas of cooperation like Industry 4.0, integration of MSME in the regional value chain. The Government of Tamil Nadu joined the event as “Partner State” while the Government of Haryana as the “Focus State”.

This year is special for both partners as it marks the 25thanniversary of the India-ASEAN dialogue partnership and 10 years of the Strategic Partnership.

An E-Book on India-ASEAN trade and investment emphasizing the engineering and MSME sector was also launched during the inaugural session. The book covers several important aspects of enhancing bilateral trade and investment and also provides exhaustive information on India and ten ASEAN nations.



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PayPal introduces digital Foreign Inward Remittance Advice

Banking & Finance

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PayPal, a global digital payments company, has introduced an automated process for receiving Foreign Inward Remittance Advice (FIRA) — a key document for Indian MSME exporters and freelancers that establishes proof of receipt of export proceeds in foreign currency from outside the country.

At zero-cost, merchants will now be able to download their monthly digital FIRA issued by the bank, by simply logging into their PayPal account. This FIRA was otherwise coming at a cost close to ₹2,000 for every 20 international transactions. This initiative is aimed at empowering Indian MSME exporters to seamlessly grow their business internationally.

New exporters

“When we help the exporters, we help ourselves. Through this FIRA automation, our merchants get a better experience. We are hoping this will be one of things that will help us attract new exporters. It helps our existing base and in acquiring new exporters as well,” Nath Parameshwaran, Director, Corporate Affairs, PayPal India told BusinessLine.

He highlighted that the pandemic has significantly accelerated digital adoption especially amongst small sellers and freelancers. At zero-cost, digital FIRA process not only reduces time, saves money and removes friction but also eliminates the need to visit branches and thereby reducing the chances of the Covid-19 infection, he added.

This has eliminated a huge number of steps for the MSME exporter and freelancers who are using PayPal. In 2020, despite the pandemic headwinds, PayPal enabled exports worth ₹10,000 crore for 3.6 lakh small exporters with a majority driven by tribal, artisan and women led enterprises, according to Parameswaran.

What is FIRA?

Foreign Inward Remittance Advice (FIRA) is a document that acts as a proof for all inward remittances and payments received from abroad. This is issued by banks in India and is required by exporters of all sizes individual or a business, such as a limited company, partnership firm, sole proprietorship firm etc.

Previously, Indian sellers and freelancers had to send a manual request to PayPal’s partner bank and also pay a fee for the service. The bank would then issue FIRA as a physical statement which could take up to 10 days and required the seller to visit the bank to collect the same.

This latest PayPal initiative comes on the heels of its partnership last month with FlexiLoans.com, a digital lending platform, to provide freelancers, women entrepreneurs, sole proprietors in MSMEs with collateral free business loans.

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