Export Finance

In Japan, a peculiar insurance coverage is extended by the Ministry of International Trade and Industry (MITI), to cover loses arising from lower than anticipated export sales following an advertisement programme. Similar insurance cover may be made available in Indian.

nIn order to reduce risk involved in export finance and in order to avoid undue competition in the area of export finance, Indian commercial banks may join hands to create a separate financial institution, which will cater to the needs of Indian exporters. The IBA may take lead in establishing such an institution.