EXPORT AND IMPORT BANK OF INDIA
1) Introduction:-
Export-Import Bank of India is the premier export finance institution of the
country. It commenced operations in 1982 under the Export-Import Bank of
India Act 1981. Government of India launched the institution with a
mandate to not just enhance exports from India, but also to integrate the
country’s foreign trade and investment with the overall economic growth.
Exim Bank of India has been both a catalyst and a key player in the
promotion of cross border trade and investment. Commencing operations as
a purveyor of export credit, like other Export Credit Agencies in the world,
Exim Bank of India has evolved into an institution that plays a major role in
partnering Indian industries, particularly the Small and Medium Enterprises
through a wide range of products and services offered at all stages of the
business cycle, starting from import of technology and export product
development to export production, export marketing, pre-shipment and post-
shipment and overseas investment.
The Exim bank is fully owned by the government of India and is
managed by a board of directors with representation from government,
financial insidious, bank and business community. The operations are
grouped into project finance, trade finance and overseas investment finance,
supported by planning and coordination groups.
Exim Bank has two broad business streams: one, the traditional export
finance typical of export credit agencies around the world and two, financing
of export oriented units (export capability creation), which are non-
traditional for export credit agencies. Since inception, Exim Bank has been
the principal financial institution in the country for financing project exports
and exports on deferred credit terms.
Exim Bank extends funded and non-funded facilities for overseas turnkey
projects, civil construction contracts, technical and consultancy service
contracts as well as supplies.
Turnkey Projects are those which involve supply of equipment along
with related services, like design, detailed engineering, civil
construction, erection and commissioning of plants and power
transmission & distribution
Construction Projects involve civil works, steel structural works, as
well as associated supply of construction material and equipment for
various infrastructure projects.
Technical and Consultancy Service contracts, involving provision of
know-how, skills, personnel and training are categorised as
consultancy projects. Typical examples of services contracts are:
project implementation services, management contracts, supervision
of erection of plants, CAD / CAM solutions in software exports,
finance and accounting systems.
Supplies: Supply contracts involve primarily export of capital goods
and industrial manufactures. Typical examples of supply contracts
are: supply of stainless steel slabs and ferro-chrome manufacturing
equipment, diesel generators, pumps and compressors.
Exim Bank, under powers delegated vide the PEM, provides post-award
clearance for project export contracts valued upto USD 100 million. Project
export contracts valued above USD 100 million need to be provided post-
award clearance by the inter-institutional Working Group. The Working
Group is a single-window clearance mechanism, comprising Exim Bank as
the convener and nodal agency, RBI – Foreign Exchange Department and
Export Credit Guarantee Corporation of India Ltd. [ECGC]. In the case of
very large value projects, officials of Ministry of Finance, Ministry of
Commerce and Industry and Ministry of External Affairs, Government of
India, are invited to participate in the Working Group Meetings. In order to
obtain immediate clarifications for speedy clearance of proposals by the
Working Group, the exporters concerned and their bankers are also
associated with the meetings. With the same objective, participation of the
main sub-suppliers, sub-contractors or other associates and their bankers in
such meetings is also encouraged, particularly in respect of proposals for
high value contracts. Exim Bank also plays the role of a financier and
provides funded and non-funded support for project export contracts of
Indian Entities.
In addition to project exports, Exim Bank also extends fund-based and non-
fund-based facilities to deemed export contracts as defined in Foreign Trade
Policy of GOI, e.g.,
- secured under funding from Multilateral Funding Agencies like
the World Bank, Asian Development Bank, etc.;
- contracts secured under International Competitive Bidding;
- contracts under which payments are received in foreign
currency.
2) Exim Bank offers the following Export Credit facilities, which can be
availed of by Indian companies, commercial banks and overseas
entities.
1) For Indian Companies executing contracts overseas
a) Pre-shipment credit:-
Exim Bank's Pre-shipment Credit facility, in Indian Rupees and foreign
currency, provides access to finance at the manufacturing stage - enabling
exporters to purchase raw materials and other inputs.
Pre-shipment credits are usually extended by exporters’ commercial banks
for period up to 180 days. Exim Bank extends pre-shipment / post-shipment
credit either directly or in participation with commercial banks. In order to
offer one-stop banking products to export clients, the Bank has also been
offering short-term pre / post shipment credit either directly or through
exporter’s bankers. Exim Bank may consider extending pre-shipment credit
and post-shipment credit for periods exceeding 180 days, on case-to-case
basis and subject to the merits of the case.
b) Supplier's Credit:-
This facility enables Indian exporters to extend term credit to importers
(overseas) of eligible goods at the post-shipment stage.
Post-shipment Supplier’s Credit can be extended to Indian exporters upto the
extent of the deferred credit portion of the export contract, either in Rupees
or in Foreign currency. The period of deferred credit and moratorium will
generally depend on the nature of goods [List A and List B of Memorandum
PEM] or nature of projects, as per guidelines contained in the Memorandum
PEM of RBI.
2) For Project Exporters:-
a) Export Project Cash-Flow Deficit Financing Programme [EPCDF]
Indian project exporters (including those under Deemed Exports category)
incur expenditure in rupee or foreign currency while executing contracts i.e.
costs of mobilisation/acquisition of materials, personnel and equipment etc.
Exim Bank's facility helps them meet these expenses for
a) Project Export Contracts;
b) Contracts in India categorized as Deemed Exports in the Foreign
Trade Policy of India.
b) Capital Equipment Finance Programme (CEFP)
Capital Equipment Finance Programmer [CEFP] has been conceived to cater
to capital expenditure for procurement of capital equipment to be utilized
across multiple contracts. CEFP provides direct access to Exim Bank’s
finance for eligible Indian companies for procurement of indigenous and
imported capital equipment for executing overseas projects / deemed export
projects.
4) For Exporters of Consultancy and Technological Services
Exim Bank offers a special credit facility to Indian exporters of consultancy
and technology services, so that they can, in turn, extend term credit to
overseas importers.
5) Guarantee Facilities
Indian companies can avail of guarantee facilities of different types to
furnish requisite guarantees to facilitate execution of export contracts
(including deemed export contracts) and import transactions.
6) For Overseas Entities
a) Buyer's Credit
Overseas buyers can avail of Buyer's Credit from Exim Bank, for import of
eligible goods from India on deferred payment terms. As per Memorandum
PEM guidelines, RBI has authorised Exim Bank to extend overseas buyer’s
credits upto USD 20 mn for project exports without seeking approval of
RBI.
The facility enables exporters/contractors to expand abroad and into non-
traditional markets. It also enables exporters/contractors to be competitive
when bidding or negotiating for overseas jobs.
Benefits to Foreign Customers
a. Enables overseas buyers to obtain medium-and long-term financing
b. Competitive interest rate against host country's high cost of borrowing
b) Buyer’s Credit under NEIA
Buyer’s Credit – NEIA is a unique financing mechanism that provides a safe
mode of non-recourse financing option to Indian exporters and serves as an
effective market entry tool to traditional as well as new markets in
developing countries, which need deferred credit on medium or long-term
basis.
Under this facility, Exim Bank facilitates project exports from
India by way of extending credit to overseas sovereign governments and
government owned entities for import of Indian goods and services from
India on deferred credit terms. Exim Bank will obtain credit insurance cover
under NEIA through ECGC. NEIA is a trust set up by the Ministry of
Commerce and administered by Export Credit & Guarantee Corporation of
India (ECGC).Facility is available for project exports requiring medium or
long term deferred credit.
7) Line of Credit (LOC)
it is a financing mechanism through which Exim Bank extends support for
export of projects, equipment, goods and services from India. Exim Bank
extends LOCs on its own and also at the behest and with the support of
Government of India. Exim Bank extends Lines of Credit to:
a) Foreign Governments or their nominated agencies such as central banks,
state owned commercial banks and para-statal organizations;
b) National or regional development banks;
c) Overseas financial institutions;
d) Commercial banks abroad;
e) Other suitable overseas entities.
The above mentioned recipients of LOCs act as intermediaries and on lend
to overseas buyers for import of Indian equipment, goods and services. LOC
is a financing mechanism that provides a safe mode of non-recourse
financing option to Indian exporters to enter new export markets or expand
business in existing export markets without any payment risk from the
overseas importers.
1. BROAD GUIDELINES AND PROCEDURE FOR GOVERNMENT
OF INDIA SUPPORTED LINES OF CREDIT
The Government of India (GOI), in 2003-04, formulated the Indian
Development Initiative (IDI), now known as Indian Development and
Economic Assistance Scheme [IDEAS] – with the objective of sharing
India’s development experience through capacity building and skills
transfer, trade, and infrastructure development, by extending concessional
Lines of Credit (LOCs) routed through Exim Bank, to developing partner
countries, towards creating socio-economic benefits in the partner country.
Recently, the Ministry of External Affairs (MEA) has set up the
Development Partnership Administration (DPA) Division to deal with
India’s development assistance programmes abroad, including LOCs routed
through Exim Bank. These LOCs are now increasingly being extended to
partner countries for large-scale and complex projects (project exports from
India). Bilateral or multilateral assistance, through lines of credit, typically
follows a sequence of standard procedures, viz.
a) Project identification and preparation,
b) Review and approval of the project proposal,
c) Offer of the loan, acceptance and execution of loan agreement,
d) Project implementation, monitoring and supervision, and
e) socio-economic impact assessment after project completion.
The lessons learned from the impact assessment / evaluation act as a
feedback to the preparation, review and implementation of future projects.
This process forms the 'project cycle.
2. BROAD GUIDELINES AND PROCEDURE EXIM BANK’S OWN
COMMERCIAL LINES OF CREDIT.
Exim Bank, since its inception, has been extending LOCs to various
countries to promote export of Indian projects, products and services. Under
the LOCs extended by Exim Bank to overseas financial institutions, foreign
governments, regional and national development banks and commercial
banks, Exim Bank finances all items eligible for being exported under the
'Foreign Trade Policy' of Government of India. The credit periods for these
LOCs are generally up to 7 years and the LOCs typically carry LIBOR-
linked interest rates.
LATEST TRANDS & PRESS RELEASE OF JUNE 2016
1. Exim Bank as a Financier of Exports
A) Projects, Products and Services Exports
The Bank provides a range of export credit services like finance for export
of projects and consultancy services, capital equipment finance, export
project cash-flow deficit finance and guarantees. The Bank is equipped to
offer a comprehensive financing package to Indian project exporters
including funded support and project related guarantee facilities.
B) Export Contracts
During FY 2014-15, 105 contracts amounting to ` 497.81 billion covering 40
countries were secured by 56 Indian exporters, as against 75 contracts worth
` 341.31 billion covering 35 countries, secured by 40 Indian exporters during
FY 2013-14. The contracts secured during the year comprised 43 turnkey
contracts valued at ` 236.44 billion, 24 construction contracts valued at `
233.02 billion, 11 supply contracts valued at ` 15.02 billion and 27 technical
consultancy & services contracts valued at ` 13.33 billion.
C) Export Credits and Guarantees
During the year, the Bank approved loans aggregating 257.34 billion by way
of supplier's credit, buyer's credit, and finance for Project Exports as against
148.78 billion during the previous year. Disbursements amounting to 151.82
billion were made during the year, as compared to` 176.87 billion during the
previous year. Guarantees sanctioned and issued during the year amounted
to ` 59.68 billion and ` 20.83 billion respectively, as against ` 40.64 billion
and ` 17.07 billion during the previous year. These guarantees pertain to
overseas projects in sectors such as power generation, transmission and
distribution, infrastructure development and export obligation guarantees.
D) Buyer’s Credit
Buyer’s Credit is a unique program of Exim Bank under which, the Bank
facilitates Indian exports by way of extending credit facility to overseas
buyers for financing their imports from India. Under Buyer’s Credit
programed, Exim Bank makes payment of eligible value to Indian exporters,
without recourse to them. Buyer’s Credit is a safe, non-recourse financing
option available to Indian exporters, especially to small and medium
enterprises, which motivates them to enter overseas markets. During 2014-
15, the Bank extended Buyer’s Credit facility aggregating ` 33.20 billion to
26 overseas companies. Disbursements under Buyer’s Credit programed
aggregated ` 26.57 billion for exports to countries that include Uganda,
United Kingdom, Zambia and Zimbabwe. The products exported under
Buyer’s Credit included transport vehicles and auto spare parts, engineering
goods, IT services, fruits and vegetables, rice, other agro-based products and
commodities, plain and studded gold / diamond jewelry, steel wires and wire
rods, fuel & furnace oil, tyros and yarn etc. Several exporters from small and
medium enterprises were beneficiaries under the Buyer’s Credit programed,
receiving non-recourse payment.
E) Lines of Credit :-
Exim Bank extends Lines of Credit (LOCs) to overseas financial
institutions, regional development banks, sovereign governments and other
entities overseas, to enable buyers in those countries to import
developmental and infrastructure projects, equipment’s, goods and services
from India, on deferred credit terms. Indian exporters can obtain payment of
eligible value from Exim Bank, without recourse to them, against
negotiation of shipping documents. During the year, the Bank extended 17
LOCs, aggregating US$ 1.67 billion, to support export of projects, goods
and services from India.
F) Building Export Competitiveness:-
The Bank operates a range of financing programmes aimed at enhancing the
export competitiveness of Indian companies. A variety of financing services
are offered to export-oriented units, importers and for overseas investment
by Indian companies. The financing programmes cater to the term loan
requirements of Indian exporters for financing their new projects, expansion,
modernization, purchase of equipment, R&D, overseas investments and also
the working capital requirements. During 2014-15, Exim Bank sanctioned
loans aggregating to ` 216.58 billion under programmes for enhancing
export competitiveness. Disbursements amounted to ` 197.91 billion under
these programmes.
Make in India:-
In line with the ‘Make in India’ campaign of the Government of India, Exim
Bank has been a catalyst in channelising FDI into the country in sectors that
are export oriented. The Bank recognizes the importance of FDI in tradable
sectors, which boosts exporting capacity by productivity improvements
through technology, learning and competition, thus improving the Current
Account Balance of the country. The Bank has facilitated many large
overseas companies to set up manufacturing facilities in India with the sole
objective of exporting back to the parent’s value chain overseas, thus
creating jobs in India. This is more pronounced in labour-intensive
industries due to the availability of skilled manpower at competitive costs in
India. For instance, a sample survey of 10 such FDI manufacturing projects
financed by Exim Bank with total assistance of 15.97 billion has been able
to facilitate FDI of ` 43.80 billion into the country and cumulative exports of
` 277.07 billion in the last five years.
Overseas Investment Finance:-
The Bank has a comprehensive programme covering equity finance, loans,
guarantees and advisory services, to support Indian outward investment.
During the year, 35 corporates were sanctioned funded and non-funded
assistance aggregating to ` 58.07 billion for part financing their overseas
investments in 11 countries. So far, Exim Bank has provided finance to 533
ventures set up by 430 companies in 91 countries. Overseas investments
supported during the year include acquisition of a veterinary products plant
in Turkey, setting up of a chilli manufacturing unit in China and acquisition
of an engineering unit in Germany, among others.
Finance for Imports:-
The Bank also selectively undertook finance towards imports under the Bulk
Import Finance Programme and Import Finance Programme. Sanctions and
disbursements amounted to 9 billion and ` 19.53 billion, respectively under
the Bulk Import Finance Programme. Under the Import Finance Programme,
companies were sanctioned term loans aggregating 30.31 billion and
disbursements aggregated `16.77 billion.
3) Exim Bank as a Facilitator of Exports
A) Rural Grassroots Business Initiatives
The Bank, through its grassroots initiatives, envisages supporting
globalization of enterprises based out of rural India. The programme seeks to
address the needs of relatively disadvantaged sections of society while
creating expanded opportunities for traditional crafts persons and artisans,
and rural entrepreneurs of the countr y. During the year, the Bank provided
support to a Maharashtra based social enterprise that promotes beekeeping to
increase agricultural productivity, enhance income and improve livelihoods
of marginal farmers in India. The intervention by the Bank is aimed at part
financing the working capital requirements of the organization, which
provides direct market access to over 3,000 small beekeepers across six
states of India. Financial support was provided to an Odisha based non
profitable Society which is into Dhokra craft, tribal jewellery, tribal painting
and tribal textiles. More than 2000 artisans belonging to the disadvantaged
sections of the society are associated with this organization. Intervention in
the form of lending support was also provided to Nilgiris, a Tamil Nadu
based social enterprise which works with nearly 2000 artisans, mostly from
the tribal communities, promoting agro-ecological products. The
organization provides a marketing platform for primary producers, forest
dwellers, weavers and craftsmen from marginalized and indigenous
communities. The Bank also continued its support to an artisan and farmer’s
cooperative society in Kumaon, Uttarakhand, which is into production of
naturally dyed silk and wool textiles and enhanced its support to a social
enterprise sourcing off-the-loom products from handlooms in Bhagalpur,
Bihar. Marketing Advisory Services The Bank plays a promotional role and
seeks to create and enhance export capabilities and international
competitiveness of Indian companies through its Marketing Advisory
Services. The Bank provides assistance in helping Indian firms in their
globalisation efforts by locating overseas distributor(s)/ buyer(s) / partner(s)
for their products and services. Exim Bank also assists in identification of
overseas opportunities for setting up plants or projects or for acquisition of
companies overseas. The Bank leverages its high international standing, in-
depth knowledge and understanding of the international markets and well
established institutional linkages, coupled with its physical presence, to
support Indian companies in their marketing initiatives on a success fee
basis.
B) Events/Exhibition
The Bank in partnership with Surajkund Mela Authority sponsored 5 stalls a
t the Surajkund Mela which was held i n Haryana during February 2015. The
internationally acclaimed event drew large number of buyers and helped the
artisans find new market opportunities. Artisans supported by the Bank
displayed crafts including Madhubani Paintings, Papier Mache & other
Kashmiri handicrafts & textiles, Jute Bags and Folders, Sanjhi Arts and
Rajasthani miniature paintings at the Mela and earned several accolades and
a ppreciation. The Bank supported booth space for Bidar Bidri Youth
Mandal and The Ants Craft Trust during the Kala Ghoda Arts Festival event
held in Mumbai during February 2015. The Festival served as a platform for
artisans of these organisations to showcase their Bidriware Artifacts and
Black Pottery products and obtained several new enquiries. The Bank also
offered assistance to Pochampally Handloom Park Ltd. by offering booth
space at the Home Expo India event in New Delhi during April 2014. The
event was organized by Export Promotion Council for Handicrafts. The
event provided access to a large number of buyers and helped Pochampally
Handloom Park find new business opportunities in both local and overseas
market. The Bank in collaboration with National Centre for Design &
Product Development and Central Cottage Industries Corporation of India
Ltd supported Pochampally Handloom Park and Anwar Ali Jute Crafts & Ba
gs to participate at an Exhibition-cum-Sales event in New Delhi during May
2014.
4) Exim Bank as a Promoter of Exports
A) Research and Analysis:-
Exim Bank’s Research & Analysis Group offers a range of research insights
on aspects of international economics, trade and investment through
qualitative and quantitative research techniques. The research work carried
out in the Group under the broad classification of regional, sectoral and
policy related studies, are published in the form of Occasional Papers,
Working Papers, Books, etc.
The some research studies undertaken by EXIM BANK are:
1. Outward Direct Investment from India: Trends, Objectives and Polic
Perspectives.
2. Indian Capital Goods Industry.
3. Research & Development in BRICS.
4. Indian Electronic Goods Industry: Neutralizing Trade Deficit with China.
5. The Indian Pharmaceutical Industry.
6. Trade Liberalization, Product Variety and Growth.
7. Bangladesh: A Study of India’s Trade and Investment Potential.
8. Potential for Enhancing India’s Trade with Australia.
B) Information and Advisory Services:-
The Bank provides a wide range of information, advisory and support
services, which complement its financing programmed. These services are
provided on a fee basis to Indian companies and overseas entities. The scope
of services includes market-related information, sector and feasibility
studies, technology supplier identification, partner search, investment
facilitation and development of joint ventures both in India and abroad.
The Bank was commissioned by the Commonwealth Secretariat,
London, to undertake a study on the Indian experience of Gender
Disaggregation of Access to Finance Data Initiative and the Priority Sector
Lending Programmed. The former case study presented an overview of the
policy framework developed by the Government of India for empowering
women with specific reference to their access to finance through directives,
Guidelines, and institutional framework.
C) Multilateral Funded Projects Overseas:-
The Bank provides a package of information and support services to Indian
companies to help improve their prospects for securing business in projects
funded by the World Bank, Asian Development Bank, African Development
Bank (AFDB) and European Bank for Reconstruction and Development.
Projects funded by such Multilateral Funding Agencies present attractive
business opportunities f or supplier s, contractors and consultants.
Recognizing the potential for increasing effective participation by Indian
firms in such multilateral funded projects, Exim Bank has been organizing
seminars in association with the Multilateral Agencies.
A RESENT FIGURS OF INDIA’S FOREIGN TRADE: (June, 2016):-
MERCHANDISE TRADE
EXPORTS & IMPORTS : (US $ Million) (PROVISIONAL)
EXPORTS (including re-exports) JUNE APRIL-JUNE
2015-16 22289.43 66690.90 2016-17 22572.30 65311.77 %Growth2016-17/ 2015-16 1.27 -2.07 IMPORTS 2015-16 33116.55 98916.56 2016-17 30688.54 84545.78 %Growth2016-17/ 2015-16 -7.33 -14.53 TRADE BALANCE
2015-16 -10827.12 -32225.66
2016-17 -8116.24 -19234.01
EXPORTS & IMPORTS : (Rs.Crore) (PROVISIONAL)
EXPORTS
(including re-exports)
JUNE APRIL – JUNE
2015-16 142341.88 423315.24
2016-17 151904.56 436960.98%Growth2016-17/ 2015-16 6.72 3.22 IMPORTS
2015-16 211484.61 627830.30 2016-17 206524.39 565754.29%Growth2016-17/ 2015-16 -2.35 -9.89 TRADE BALANCE 2015-16 -69142.73 -204515.06 2016-17 -54619.83 -128793.31
MERCHANDISE TRADE
A) EXPORTS (including re-exports):-
For the first time after a gap of 18 months, exports in June 2016 have
recorded a positive growth of 1.27%.
During June,2016 exports were valued at US$ 22572.30 million
(Rs.151904.56 crore) which was 1.27 per cent higher in Dollar terms (6.72
per cent higher in Rupee terms) than the level of US$ 22289.43 million (Rs.
142341.88 crore) during June,2015. Cumulative value of exports for the
period April-June 2016-17 was US$ 65311.77 million (Rs.436960.98 crore)
as against US$ 66690.90 million (Rs.423315.24 crore) registering a negative
growth of 2.07 per cent in Dollar terms and positive growth of 3.22 per cent
in Rupee terms over the same period last year.
Non-petroleum exports have recorded a positive growth of 3.06% in June
2016, higher than the 1.01% growth achieved in May 2016. During June
2016 Non-petroleum exports were valued at US$ 19997.33 million against
US$ 19403.89 million in June 2015, an increase of 3.06%. Non-petroleum
exports during April to June 2016 are valued at US$ 58706.57million as
compared to US$ 58622.45 million for the corresponding period in 2015, an
increase of 0.14 %.
The growth in exports have fallen for USA (-7.44%), Japan (-2.23%), China
(-1.79%) but European Union exhibited positive growth (4.33%) for April
2016 over the corresponding period of previous year as per latest WTO
statistics.
B) IMPORTS
Imports during June 2016 were valued at US$ 30688.54 million (Rs.
206524.39 crore) which was 7.33 per cent lower in Dollar terms and 2.35
per cent lower in Rupee terms over the level of imports valued at US$
33116.55 million (Rs. 211484.61 crore) in June,2015. Cumulative value of
imports for the period April-June 2016-17 was US$ 84545.78 million (Rs.
565754.29 crore) as against US$ 98916.56 million (Rs. 627830.30 crore)
registering a negative growth of 14.53 per cent in Dollar terms and 9.89 per
cent in Rupee terms over the same period last year.
C) CRUDE OIL AND NON-OIL IMPORTS:
Oil imports during June, 2016 were valued at US$ 7252.11 million which
was 16.42 per cent lower than oil imports valued at US$ 8676.38 million in
the corresponding period last year. Oil imports during April-June, 2016-17
were valued at US$ 18846.62 million which was 23.57 per cent lower than
the oil imports of US$ 24657.97 million in the corresponding period last
year. Non-oil imports during June, 2016 were estimated at US$ 23436.43
million which was 4.11 per cent lower than non-oil imports of US$
24440.17 million in June, 2015. Non-oil imports
during April-June 2016-17 were valued at US$ 65699.16 million which was
11.53 per cent lower than the level of such imports valued at US$ 74258.59
million in April-June, 2015-16.
SERVICES TRADE
EXPORT & IMPORTS (SERVICES): (US $ Million)
(PROVISIONAL) May 2016-17
EXPORTS (Receipts) 13460.00
IMPORTS (Payments) 7922.00
TRADE BALANCE 5538.00
EXPORTS & IMPORTS (SERVICES): (Rs. Crore)
(PROVISIONAL) May 2016-17
EXPORTS (Receipts) 90056.42
IMPORTS (Payments) 53003.49
TRADE BALANCE 37052.93
Source: RBI Press Release dated 15th July 2016
II. TRADE IN SERVICES (for May, 2016, as per the RBI Press Release
dated 15thJuly, 2016)
A) EXPORTS (Receipts)
Exports during May, 2016 were valued at US$ 13460 Million (Rs. 90056.42
Crore) registering a positive growth of 4.28 per cent in dollar terms as
compared to positive growth of 0.10 per cent during April 2016 (as per
RBI’s Press Release for the respective months).
B) IMPORTS (Payments)
Imports during May 2016 were valued at US$ 7922 Million (Rs. 53003.49
Crore) registering a positive growth of 10.29 per cent in dollar terms as
compared to negative growth of 9.13 per cent during April 2016 (as per
RBI’s Press Release for the respective months).
III.TRADE BALANCE
A) MERCHANDISE: The trade deficit for April-June, 2016-17 was
estimated at US$ 19234.01million which was lower than the deficit of US$
32225.66 million during April-June, 2015-16.
B) SERVICES: As per RBI’s Press Release dated 15th July 2016, the trade
balance in Services (i.e. net export of Services) for May, 2016 was estimated
at US$ 5538 million. The net export of services for April- May, 2016-17 was
estimated at US$ 11263 million which is higher than net export of services
of US$ 11244 million during April- May, 2015-16. (The data for April-May
2015-16 and 2016-17 has been derived by adding April-May month wise QE
data of RBI Press Release).
C) OVERALL TRADE BALANCE: Overall the trade balance has
improved. Taking merchandise and services together, overall trade deficit
for April- June 2016-17 is estimated at US$ 7971.01 million which is 62.01
percent lower in Dollar terms than the level of US$ 20981.66 million during
April-June 2015-16. (Services data pertains to April-May 2016 as May 2016
is the latest data available as per RBI’s Press Release dated 15th July 2016).