EFFECTIVENESS OF EXIM BANK'S PRE-SHIPMENT EXPORT CREDIT TO INDIAN PROJECT EXPORTERS: AN ANALYSIS
Chandana M, Dr. R. Thimmarayappa
Department of Commerce, Maharaja’s College, University of Mysore, Mysuru - 570005, Karnataka
Abstract
The Export-Import Bank of India (EXIM Bank), established by the Government of India, serves as the principal institution for financing international trade and project exports. Over the years, it has become a crucial instrument in promoting India’s global presence through credit, guarantees, and risk-mitigation support. This paper examines the effectiveness of pre-shipment export credit provided to Indian project exporters, with a focus on its role in easing working capital constraints, enhancing liquidity, and strengthening competitiveness in overseas markets. The study also highlights how pre-shipment finance contributes to timely project execution and reinforces the export capabilities of Indian enterprises.
Keywords: • Export-Import Bank of India (EXIM Bank): The principal financial institution of the Government of India that provides credit, guarantees, and support for international trade and project exports.
• Pre-shipment credit: A short-term working capital facility extended to exporters to finance raw materials, processing, manufacturing, and shipment preparation before goods are dispatched.
• Project exports: Overseas contracts undertaken by Indian companies, including civil construction, turnkey projects, supplies, consultancy, and composite contracts that generate foreign exchange earnings.
• Working capital: The short-term financial resources required by exporters to cover operational needs, such as procurement, labor, and logistics, before receiving export payments.
• Liquidity: The availability of immediate funds to meet short-term obligations, crucial for ensuring timely execution of export projects without delays.
• Competitiveness: The ability of Indian project exporters to win and successfully execute international contracts by offering cost-effective, timely, and reliable services.
• International trade finance: Financial instruments and credit mechanisms that facilitate cross-border trade, reduce risks, and enhance the capacity of exporters to participate in global markets.
Journal Name :
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EPRA International Journal of Economic and Business Review(JEBR)
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Published on : 2025-09-17
| Vol | : | 13 |
| Issue | : | 9 |
| Month | : | September |
| Year | : | 2025 |