Exim Bank may explore scope for project exports

The Export-Import Bank of India (Exim Bank) is considering supporting Indian companies in exploring potential project exports in sectors like engineering, construction and equipment. In the past few months, the bank had focused on research and marketing schemes to identify the potential for exports in each sector, said a senior Exim Bank official.

Speaking to reporters after inaugurating the bank’s new office premises here, Chairman and Managing Director T C A Ranganathan said, “We are trying to push project exports. There are about 100 companies that have the potential to work on projects outside.” He added the global scenario was expected to remain stressed for one to two years and during that time, “things which have not been done in the past have to be done” to grow.

“In the last several months, we have invested on a lot of research and marketing activities, in collaboration with various international banks and other institutions,” he said.

Ranganathan said through its new office in Chennai, Exim Bank would hold discussions with companies in Chennai to promote exports.

There are sectors that hold huge untapped potential for exports, he said. These include high-tech goods, which account for about 23 per cent of the world exports. However, these contribute only seven per cent to India’s $300-billion exports (2011-12). Agriculture also had huge untapped potential, which could be explored to increase exports from India, Ranganathan said.

In the first six months this year, growth in exports was somewhat flat, while the year-ago period had seen exports rise 40 per cent.

So far, Exim Bank has sanctioned lines of credit of $8.16 billion (last year, this stood at $7.6 billion), supporting Indian exporters in various projects abroad. The government expects exports rise from $300 billion last year to $360 billion this year. However, trade deficit this year was expected to stand at about last year’s level of $180 billion, said a senior Exim Bank official.