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Active engagement in global trade has become one of the keyfactors in the growth of firms and the prosperity of countries.This is true not only in the case of major trading nations, butalso, and perhaps even more so, with respect to developing

countries like India. Liberalisation of the foreign trade sector hasbeen a cornerstone of the reforms of the Indian economy, withthe result that the countrys share in global trade has beenrising in recent years, as also the contribution of the foreigntrade sector to the overall Indian economy. The share of Indiain global merchandise eports has risen from !." per cent in#$%! to over #.! per cent in &!!', as per latest data from (T),while the merchandise foreign trade *eports plus imports+sectors contribution to the countrys - has risen fromaround #/.! per cent to //.% per cent during the same period.The buoyancy in Indias services sector, with the country rankingamongst the top ten global eporters, would serve to further

corroborate Indias emerging place in the global comity oftrading nations.

investor, the 0anks endeavours in this direction can beassessed from the fact that as many as #1' Indian venturesset up by over #"1 companies in 2" countries, in both industrialand developing as well as emerging economies, have been

supported, with the 0ank taking direct e3uity participation inselect cases to enhance such ventures.

In the realm of trade financing, which is the primary area ofactivity of most 4port 5redit Agencies around the world, the0anks operative Lines of 5redit *L)5s+ of over 1! with creditcommitment of 678 &./ billion covering more than %! countriesserve as effective market entry mechanisms especially for smalland medium enterprises, and the 0ank is seeking to epandgeographical reach and volumes in this initiative.

(ith India amongst leading global services eporters, the 0ankhas played a pivotal and pioneering role in catalysing Indias

software eports since the mid #$%!s, while the 0anks supportto Indian engineering and

consultancy services has added to4port9Import 0ank of India *4im0ank+, set up in #$%& as an apefinancial institution to finance, facilitate

Exim Bank : Athe momentum in the significantgrowth in Indias overall services

and promote Indias internat ional Catalyst forIndiastrade, has constantly strived to

contribute towards Indias globalisationefforts. (ith strong businessfundamentals, and in line with theincreasingly competitive global trading

eports witnessed in recent years.

The growing domain epertiseas also increasing technicalsophistication of 4im 0ank would,perhaps, be best reflected by thefact that the 0ank, in its journey

environment, the 0ank proactively seeks to enhance thecompetitive edge of Indian companies through a comprehensiverange of financing programmes and advisory and supportservices which encompass all stages of the eport businesscycle. Towards facilitating inclusive globalisation, the 0ank isalso involved in creating eport capability in small and mediumenterprises, grassroots business enterprises and agro industries.

Indias project eports, commencing with a modest beginningin the early #$%!s, have evolved over the years to ehibitepertise in a wide range of activities thereby reflectingtechnological maturity, industrial capabilities, and growingsophistication of Indian eports, and the 0anks pioneering

and pivotal role in this direction has served to catalyse sucheports. (ith India increasingly emerging as a major global

spanning a 3uarter century, has been partnering and sharingits eperience with other developing and emerging economiesin their efforts to set up similar institutions, fostering an era of7outh97outh cooperation.

5hallenges abound in the globalised trading environment: withincreased focus on regional trade, and 7outh97outh cooperationemerging as important drivers of growth, the significant role ofthe 0ank in facilitating enhanced regional trade through thesetting up of the Asian 4im 0anks ;orum, as also the creation ofthe lobal

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Board of Directors*As on @ay /#, &!!1+

r. A!a" ua Shri #. $. %illaiChief Economic Adviser Secretary Secretary -epartment of 4conomic Affairs -epartment of Industrial -epartment of 5ommerce@inistry of ;inance olicy ? romotion @inistry of 5ommerce ? Industry

@inistry of 5ommerce ? Industry

Shri N. RaviSecretary (East)@inistry of 4ternal Affairs

Shri Rakesh Sin&hJoint Secretary (IF)0anking -ivision@inistry of ;inance

Shri T.C.'enkat SubramanianChairman & Managing Director4port9Import 0ank of India

Smt. Sh"amala #opinath Shri '. %. Shett" Shri A. '. (uralidharanDepty !overnor Chairman & Managing Director Chairman"cm"Managing Director >eserve 0ank of India Industrial -evelopment 0ank of 4port 5redit uarantee

India Ltd. 5orporation of India Ltd.

Shri O. %. )hattChairman7tate 0ank of India

Shri S. C. #uptaChairman & Managing Directorunjab

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2

The Past Decade

*>s. in mn+

+OANS

Approvals #%"!' #%/%! &%/#% "/ "&"!1 1%&%/ $&'21 #2%2/2 &!"%%1 &'1'&& $/#&/% /2B

-isbursements #/1!" #&1!1 #1&$' #%$'" /"2&$ 2/&!/ '$212 ##"/2& #2!/%$ &&!1'! 1!2"1$ /'B

Loan Assets # /%&"% "&'"# 2!%// 2'""/ '%&'! %11/' #!112# #&$#!" #12$/# &&%%'& &&B

#ARANTEES

Approvals "!&" &'// ""!" #% 2"2! $/&% #!1$& #2%%1 "/&'" "$$1% #"1%1% /&B

Issuance #$#& &"1" /!#1 #1"# "#'" 1&12 21"/ #''!& $2$ #'$1& %#%2$ &1B

uarantee ortfolio #&!$" #!22/ ###"1 #!1"! ##&1/ #'#// #21'$ &/1&1 /"!&/ /2/'! #/B

RESORCES

aid9up 5apital 2!!! 2!!! 22!! 22!! '2!! '2!! '2!! %2!! $2!! #!!!!

>eserves 1!2% %/2& $2%" #!''" #&!&' #/#1# #"$// #''&2 #11!/ #%1"#

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Chairmans Statement(ith Indian companies increasing

endeavours to epand their reach

overseas, the 0anks focus in this>eflecting strong fundamentals and

conducive policy directions, the

Indian economy has continued to

register robust performance, with

real - growth for &!!'9!1

estimated at $." per cent. )n the

eternal front, Indias share in global

merchandise eports has surpassed

#.! per cent during &!!', as per

latest (T) data, while India also

ranks amongst the top ten global

eporters of services. 4nhancement

of international competitiveness and

broadening and deepening of

sectoral and geographical reach

have underpinned Indias buoyant

eternal sector performance.

As the countrys premier eport

f inance institution, and in l ine

with the overnment of Indias

foreign trade policy coupled with

the i ncreas ing ly competit ive

global environment, 4im 0ank

pr oacti vely endeavour s to

enhance the competitive edge of

Indian compan ies i n their

internationalisation efforts, through

a comprehensive range of financing

programmes and advisory an d

support services at all stages of the

eport business cycle. The 0ank

also facilitates two9way technology

transfer by financing import of

technology into India and investment

abroad by Indian companies for

setting up joint venturesCsubsidiaries

and overseas ac3uisitions. The 0ank

is also involved in creating eport

capability in small and medium

enterprises, grassroots business

enterprises and agro industries.

BUSINESS INITIATIES

To enhance market diversification,

the 0ank lays special emphasis on

etension of Lines of 5redit *L)5s+

as an e ffec tive marke t entrymechanism especially for small and

medium enterprises. -uring the

year, #' L)5s were etended

aggregating 678 2"& mn to support

eports of projects, goods and

services from India. The 0ank now

has in place 1/ L)5s covering

%/ countries in Africa, Asia, 5I7,

4urope and Latin America, withcredit commitments aggregating

678 &./ bil lion, and the 0ank is

proactively seeking to epand

geographical reach and volumes

under the L)5 programme.

(ith the pivotal role of the 0ank in

supporting Indias project eports,

renewed focus in this direction has

seen Indian eporters, w ith

4im 0anks support, securing

21 contracts amounting to

>s. #"! billion covering &! countries.

Indian consultants, suppliers and

contractors have demonstrated

increasing capability to eecute a

range of projects.

direction is evident from the fact that

&$ proposals were supported during

the year for part financing their

overseas investments in diverse

sectors covering different markets.

The 0ank has, over the years,

supported #1' ventures set up by

over #"1 companies in 2" countries,

both in industrial countries and

developing ? emerging economies.

Towards fac il itat ing inclusive

globalisation, and in line with the

overnment of Indias focus on

village and rural sectors, the 0ank

has introduced an innovative facility

to support globalisation of rural

industries through its rassroots

0usiness Initiative. The programme

seeks to address the needs of

relatively disadvantaged sections ofsociety while creating epanded

oppor tuni ties for tradit ional

craftspersons and artisans, and rural

entrepreneurs of the country.

Towards this end, the 0ank has

consciously sought to establish,

nurture and foster a variety of

institutional linkages with select

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(orld 0ank roup, organised an

FIndia -ay at I;5s display9cum9

sales centre called Fangea at

(ashington -.5. at which productsmade by a number of esearch 5entre, 6niversity of

@anchester, 6ni ted Gingdom,

focused on FInclusive lobalisationD

undertake capacity development

initiatives that promote economic

development *through increased

employment, investment, trade andeconomic activity+ in 5ommonwealth

member states. 4im 0ank is in

discussion with Asian -evelopment

0ank for a long term line of credit of

678 &2! mn without sovereign

guarantee for support ing and

strengthening eport oriented 7@4

sector in India. 4im 0ank has

concluded an agreement with Hapan

0ank for International 5ooperation*H0I5+ for a 678 #!! mn e3uivalent

Hapanese en loan to support

eporting companies in India with

Hapanese interest.

>esearch studies brought out by the

0ank during the year include

7trengthening > ? - 5apabilities in

India: 7ector study of Indian

5hemical Industry: )pportunities

to &!!', in commemoration of the

0anks 7ilver Hubilee.

As part of the 0anks 7ilver Hubilee

ear celebrations, a series of

seminars on topics of relevance

were organised at select centres in

India which included Fotential for

4port of Agricultural roducts from

0ihar at atna: Flobalisation

through )verseas Investment at

Golkata: Fotential for 4port of

Agricu ltural roducts from the

egion at uwahati:FTrade and Investment )pportunities

between India and 55 5ountries

at -ubai: FIndian IndustryD Hourney

Towards 0orderless (orld at

5hennai : and the concluding

seminar on FlobalisationD

)pportunities and 5hallenges for

Indian 5ompanies at @umbai.

4im 0anks new >epresentativeTackling 5hronic overty.

To enhance support provided

to the 7@4 sector, a vibrant and

important sector of the Indian

economy, 4im 0ank, under

its cooperation arrangement

with the International Trade

abroad for Indian 5onstruction

Industry: as also, Analysis of

Hapanese and 67 ;oreign -irect

Investments in Indian @anufacturing

7ector. Towards diversification of

epor t marke ts , the 0anks

)ccasional apers have identified

)ffice in -ubai, located in the

prest igious -ubai International

;inancial 5entre, is epected to play

a key, catalytic role in further

enhancing trade and investment

between India and the @iddle 4ast

5entre *IT5+ for implementing opportunities for enhancing Indias >egion, while also helping Indian

IT5s uni3ue 4nterprise commercial presence as also companies increase their business

@anagement -evelopment 7ervices bilateral trade and investment in the 5entral Asian and

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7upport Ag ency, Af gha nis ta n: 7outh97outh cooperation in trade >s. #! billion, which is e3ual to the

0anca opolare di icenJa, Italy: and investment. The second Annual current authorised capital of the

0elvnesheconombank, 0elarus: @eeting, held in eneva in 0ank as on @arch /#, &!!1.

Gf(, ermany: Guwait India @arch &!!1, witnessed the technical -uring the year, foreign currency0usiness 5ouncil, Guwait: Hordan launch of 9

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have been a valuable source of

learning and support. The 0ank has

received strength and value from

interaction with industry, banks,financial institutions, 4port 5redit

uarantee 5orporation of India Ltd.,

@inistries of overnment of India,

particularly the parent @inistry of

;inance, >eserve 0ank of India, and

Indian @issions overseas.

B#A!D #$ DI!ECT#!S

There have been changeson the 0oard during th e

year. 7hri . G. illai, 5ommerce

7ecretary, overnment of India,

@inistry of 5ommerce and Industry,

-epartment of 5ommerce:

7hri >inJing (angdi, 7ecretary *4>+,

overnment of India,

@inist ry of 4ternal Af fa ir s:

7hri avi, 7ecretary *4ast+,

overnment of India, @inistry of

4ternal Affairs: 7hri >akesh 7ingh,

Hoint 7ecretary *I;+, overnment of

India, @inistry of ;inance,

-epartment of 4conomic Affairs,0anking -ivision: 7hri ). . 0hatt,

5hairman, 7tate 0ank of India:

and 7 hr i A . . @uralidharan,

5hairman9cum9@anaging -irector,

4port 5redit uarantee 5orporation

of India Ltd. were appointed

as -irectors on the 0oard.

7hr i 7 . < . @enon, 5ommerce

7ecretary, overnment of India,@inistry of 5ommerce and Industry,

-epartment of 5ommerce:

7hri >inJing (angdi, 7ecretary *4>+,

overnment of India, @inistry of

4ternal Affairs: 7hri Amitabh erma,

Hoint 7ecretary, overnment of India,

@inistry of ;inance, -epartment of

4conomic Affairs, 0anking -ivision:

-r. 5hristy L. ;ernandeJ, 5hairman9

cum9@anaging -irector, 4port

5redit uarantee 5orporation of

India Ltd.: and 7hri A. G. urwar,

5hairman, 7tate 0ank of India,

relin3uished their directorshipsconse3uent upon completion of their

term or change in office. The 0ank

gra tef ully acknowledge s their

invaluable contributions as -irectors.

The staff of the 0ank, which is the

key resource, displayed high level

of commitment and dedication to the

pursuit of business growth and new

initiatives and merits a specialmention for carrying the 0anks

mission forward. The 0anks

part ic ipat ive and professional

work cul ture has consistently

remained a source of strength for

the 0ank.

*T.5. enkat 7ubramanian+

April &%, &!!1

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Economic En%ironment facilitated by easing oil prices,continued employment growth and

a halt on monetary tightening by the

&"#BA" EC#N#'(The global economy ehibited a

strong performance in &!!',

part icularly gaining from the

economic dynamism in the first half

of the year. -espite a slowdown in

the 67 economy later in the year,

sustained economic activity in the

emerging markets and developing

countries contributed to an improved

global - growth of 2." per centin &!!', as compared to ".$ per cent

during &!!2, as per the I@;s (orld

4conomic )utlook, April &!!1. (hile

real - growth in advanced

economies touched /.# per cent in

&!!' as against &.2 per cent during

&!!2, the emerging markets and

developing countries registered a

robust 1.$ per cent real - growth

in &!!', sustaining over 1 per cent

growth for the third consecutive

year. lobal inflation, which peaked

to over " per cent during the first

half of the year, however eased

thereafter, primarily on account of

declining oil prices and tightening of

monetary polices across the globe.

5onsumer price inflation averaged

&./ per cent in &!!' for the

advanced economies, same as the

previous year but remained high at

2./ per cent for the emerging

markets and developing countries,notwi thstanding the marginal

decline over &!!2.

4conomic activity in the 67 ,

particularly post first 3uarter, was

contained due to a depressed

housing sector and softening of

corporate investment in plant and

e3uipment. Eowever, the effect was

offset to a large etent by sustained

private consumption spending,

;ederal >eserve since August &!!'.

)verall, the 67 economy registered

an improved real - growth of

/./ per cent in &!!', as against

/.& per cent in &!!2. Though the

federal government defi cit, as a

percentage of -, declined to

#.$ per cent in &!!', a current

account deficit to the tune of

'.2 per cent of - and the

downturn in the housing market

remain as major concerns relatedto the 67 economy. 4conomic

growth moderated in 5anada to

&.1 per cent in &!!', as compared

to &.$ per cent in &!!2, primarily

because of subdued domestic

demand. Though the government is

advocating fiscal prudence, a

weaker9than9epected 67 economy

could have its repercussions on

5anadas economic growth.

The 4uro area gained from

increasing business confidence and

improving labour markets to register

a real - growth of &.' per cent

in &!!', its best performance since

&!!! and almost double of

#." per cent recorded in the previous

year. rowth was observed across

the region ranging between amodest #./ per cent in case of

ortugal to a high of '.! per cent in

Ireland, with eight of the thirteen

countries registering a real -

growth of over / per cent. Among

the major economies, while a sharp$an%s Commencement Day Annal 'ectre * on +Inclsive !lo,alisation- .ac%ling Chronic#overty /as delivered ,y Dr0 David 1lme2 #rofessor of Development Stdies and FonderDirector of Chronic #overty 3esearch Centre2 4niversity of Manchester2 45 0Dr0 3a%esh Mohan2 Depty !overnor2 3eserve $an% of India2 presided over the fnction0

turnaround in ermanys economic

activity was facilitated by robust

eport growth, strong investments

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Trends in ndia/s(erchandise Trade

*>s. in billion+!'9!1

$19$% $%9$$

$$9!!!!9!# !#9!&

!&9!/ !/9!"

!"9!2

!29!'

growth of &.1 per cent in &!!', as

against #.$ per cent in the previous

year, on account of robust eports,investments and accelerated

consumption demand. Eowever, as

inflation increased to a five year high,

the 0ank of 4ngland resorted

to increases in the interest rate

during the year.

dynamism.

4conomic growth in developing Asia

in &!!' continued to be led by 5hinaand India. This is evident as, while

real - growth of developing Asia

further strengthened to $." per cent

in &!!', over and above the

$.& per cent growth in the previous

year, the regions economic growth

8000

9000

4000

3500

4ports Imports Trade 0alance

Trends in ndia/sServices Trade

*>s. in billion+

!'9!1

In &!!', Hapan sustained th e

momen tum o f i ts economic

epansion with support from strong

private investments and eports and

resumption in credit lending. Hapans

real - growth improved to

&.& per cent in the year as compared

ecluding 5hina and India stood at

2.$ per cent in &!!', reflecting a

marginal slowdown compared to

'.& per cent in &!!2. Eowever, real

- growth was particularly high in

7outh Asia at %.1 per cent in &!!'

largely due to a robust real -

3000

2500

2000

1500

1000 $%9$$500 $19$%

0

500

1000

$$9!! !!9!#!#9!& !&9!/

!/9!"

!"9!2!29!'

1500

2000

2500 4ports Imports 7ervices 0alance

Cellofarm 'td02 located in 3io de Janeiro2 $ra6il2 ac7ired ,y the Indian company StridesArcola, 'td02 /as sanctioned a Foreign Crrency 'oan nder the 8verseas Investment Financeprogramme of the $an%2 to part finance its operations0

growth in India. rowth in the Indian

economy emerged on the strength

of its domestic demand, buoyant

eports and high levels of

investment, underlined by significant

performances by the manufacturing

and serv ices sectors. 5hina

continued its strong economic

performance in &!!' registering a

#!.1 per cent real - growth, as

against #!." per cent recorded

and buoyancy in consumption due to #.$ per cent in &!!2. articularly,

6000

5000

4000

3000

2000

1000

0

1000

2000

3000

to the 7occer (orld 5up, a pickup robust growth in eports and income

in employment growth and increase from foreign assets resulted in a

in private consumption ependitures current account surplus close toenhanced economic growth i n " percent o f - in &!!'. In

;rance and Italy. The resurgence in Huly &!!', though the 0ank of Hapan

economic growth in the 4uro area eited its Jero interest rate policy,

could be sustained with increased Hapan needs to adopt a gradual

reforms directed towards enhancing transition to a more neutral monetary

labour utilisation. )utside the 4uro stance and address the concern of

area in (estern 4urope, the 6nited aging population with a view to carry

Gingdom recovered with a real - forward the present economic 4000

5000

6000

7000

8/11/2019 ANR_FULL

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in &!!2, and was driven by robust

increases in investments an d

eports. Eowever, as credit offtake

continued to remain strong, signs ofoverheat ing and inflationary

pressures were distinct in both

India and 5hina, which were

addressed by increases in interest

rates, reserve re3uirement ratios

and strengthening of l i3uidity

management in both the economies.

In the newly industrialised Asian

economies *epublic of

Gorea, Eong Gong, 7ingapore and

Taiwan rovince of 5hina, growth

was boosted on account of strong

eternal demand, primarily in the

electronics sector. This is reflected

by a robust &1.2 per cent rise in

7ingapores current account surplus

in the year, significantly contributing

towards its real - growth of

1.$ per cent. The vibrancy of the

eternal sector, reflected in strong

current account surplus, was alsothe key driver behind economic

growth in the A74A< countries,

where though growth varied, it

remained over 2 per cent for all

ecept for 0runei -aressalam.

As the eport momentum in the

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@ashre3 region on account offavourable eternal demand and a

revival in foreign investment. 4gypt,in particular, registered a robust

real - growth of '.% per centin &!!', improving over th e

".2 per cent growth in the previous

year on account of increasednon9oil eports.

In Latin America, real - growth

improved to 2.2 per cent in &!!',

as against ".' per cent in the

previous year. This could be

attributed to a combination of growth

in the domestic demand supported

by accommodative macroeconomic

policies, as wel l as in eternal

demand due to favourable

commodity prices. The latter

facilitated growth in the current

account surplus to #.1 per cent of

the regions - in &!!'. rowth

was most pronounced in eneJuela

and Argentina, partly because of

their low bases, at #!./ per cent and%.2 per cent respectively in &!!'.

(hile economic growth in 0raJil

went up to /.1 per cent in &!!'

supported by an easing monetary

policy environment, countries like

5olombia and eru gained from

higher metal prices to register real

- growth of '.% per cent and

%.! per cent, respectively, in &!!'.

5hiles slowdown could be attributedto a depressed domestic demand

partly on account of monetary

tightening to curb inflation. @eico

registered an improved economic

performance in &!!' over the previous

year with real - growth put at

".% per cent, gaining from higher

investment, much of which was aimed

at reviving the hydrocarbons sector.

I n the 5ommonwea lt h of

Independent 7tates *5I7+, economic

dynamism in &!!' was driven

primarily by strong commodity pricestogether with buoyant domestic

demand aided by substantial private

capital inflows. >eal - growth

of the 5I7 countries averaged

1.1 per cent in the year, over and

above '.' per cent recorded in &!!2.

(hile growth was sustained at over

nine percent in Turkmenistan and

0elarus, real - of GaJakhstan

went up by a robust #!.' per cent

in the year driven by private

consumption, fue l led by o i l

revenues. In >ussia, there was a

modest improvement in economic

growth to the tune of '.1 per cent in

&!!', which may be attributed to

double9digit growth in private

consumption and fied investment.

Eoweve r, i nf la ti on remained

considerably high at $.1 per cent

despite a marginal respite due tolower administered price increases.

4lsewhere, in 6kraine, economic

growth turned around sharply from

&.1 per cent in &!!2 to 1.# per cent

in &!!', on account of rising

international steel prices and robust

domestic demand. AJerb ai ja n

recorded worlds highest economic

growth, second year in the running,

with a real - growth of/#.! per cent in &!!'. (hile growth

was primarily derived out of the

epanding oil sector, economic

boom in the country was well

supported by a double9digit growth

in the non9oil sector.

In emerging 4urope, economic

activity in &!!' was boosted

by the economic buoyancy in

(estern 4urope coupled with

dynamism in domestic demand,

driven by foreign investment and

domestic consumption. As a result,real - growth in emerging

4urope improved to '.! per cent in

&!!' as compared to 2.2 per cent

in the previous year. The sustained

economic health of the region could

also be attributed to the gradual

integration process with the

4uropean 6nion, the latest being the

accession of 0ulgaria and >omania

in Hanuary &!!1. In the region,

growth was particularly distinct in the

0altic states of Latvia and 4stonia,

which registered robust growth rates

of ##.$ per cent and ##." per cent,

respectively, in &!!'. (hile the

5entral 4uropean countries

averaged real - growth of

2.1 per cent in the year, the same

for 7outhern and 7outh9eastern

4urope is put a t ' .1 per cent.

Eowever, current account deficitwidened further in emerging 4urope

while inflation growth was contained

in most of the countries. An

eception to this has been Turkey,

where consumer price inflation

averaged $.' per cent in &!!',

which prompted monetary tightening

resulting in a subdued economic

performance at 2.2 per cent in &!!'

as against 1." per cent in &!!2.)orld Trade

(ith an upward movement in global

output and significant rise in world

trade prices of non9fuel primary

commodities, global eports of

goods went up to 678 ##,$&! billion

in &!!' implying a #'.! per cent

increase over previous years total

8/11/2019 ANR_FULL

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Composition o0 ndia/s (erchandise Exports*>s. in billion+

! #!! &!! /!! "!! 2!! '!! 1!! %!! $!! #!!! ##!! #&!!

4ngineering goods

%"%.1

#!2&.!

etroleum products

5hemicals ? related products

2!$.%

'%'.$

1#'.%

1''.%

Tetiles'1/.&

'2'.%

'%%./

ems ? jewellery

Agri ? allied products

)res ? minerals

Leather ? leather manufactures

##'./

#&!.1

&1".!

&1!.'

/&%.!

/"!.&'&2.$

4lectronic goods

@arine products

'/.'

'".&

$$./

##'.'

)thers&'!.!

/1"./

&!!29!' &!!'9!1M M Apr9;eb &!!'9!1

of 678 #!,&12 billion, when it had

grown by #" per cent.

8/11/2019 ANR_FULL

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Composition o0 ndia/s (erchandise mports*>s. in billion+

! &2! 2!! 12! #!!! #&2! #2!! #12! &!!! &&2! &2!!

etroleum crude ? products

@achinery

4lectronic goods

'%$.2

2%".#

'2&.%

%%/.'

#$"'."

&/''.!

old ? silver

@etalliferrous ores ? products

)rganic ? inorganic chemicals

#''.$

/"!.2

/!2.!

/&&.#

"$2."2$".2

earls, precious ? semi9precious stones

Iron ? steel

#$'.&

/!!.'"!".1

5oal, coke ? bri3uettes

#'/.%&2$.$

;ertilisers

$#.' #%/.'

)thers

#/'.1 #&'#.1

#/&$./

&!!29!' &!!'9!1M M Apr9;eb &!!'9!1

in &!!'. (ith buoyant economic

activity in the region, net direct

investments rose to 678 "$.' billion

in the year, higher compared to

678 "2.& billion in &!!2. In Africa

? @iddle 4ast, though direct

investments contracted in &!!',

strong growth in net portfolio

investment coupled with net non

bank lending resulted in an overall

rise of net private capital flows to

678 &$.% billion in &!!'. As the

Asia9acific region eperienced thestrongest economic growth of

%.2 per cent among all emerging

economies in &!!', net private

capital flows to the region increased

to 678 &2".2 billion in &!!' from

678 %.# billion in the previous

year. Though net e3uity investment

in Asia9acific declined in &!!' to

678 #&&." billion as compared to

678 #/&.1 billion in &!!2, it stillaccounted for 2' per cent of the total

net e3uity investment to emerging

economies in &!!'. There was also

a 1/ per cent growth in net lending

by commercial banks in Asia9acific

in &!!'. Eowever, a sharp decline

in net private capital flows was

observed in Latin America where it

contracted to 678 "!." billion in

&!!' from 678 1!.$ billion in the

previous year.

5ontinuing with the momentum

achieved in recent years, current

account surplus of the emerging

economies further improved to

678 /1%.2 billion in &!!', implying

a &&." per cent growth over

the previous years surplus of

678 &1&." bill ion. The impetus

came primarily from the Asia9acific

region and to a modest etent from

Latin America. In the Asia9acific

region, current account surplus

reached 678 &$!./ billion, followinga robust increase of '!." per cent

over 678 #%#.! billion recorded in

&!!2. This was matched by a

678 /2& billion rise in reserve

accumulation in the region led by

678 &"! billion accumulation in

5hinas reserves alone. In Latin

America too, on account of a current

account surplus of 678 2!.$ billion,

reserves went up by 678 2!.& billion.

In emerging 4urope and Africa ?

@iddle 4ast, current account surplus

however remained depressed at

678 &&./ billion and 678 #2.! billion,respectively.

Eealthy current account surplus,

buoyed by strong eports resulted

in a steady decline in the eternal

debt of emerging markets an d

developing economies, as a

proportion of their eports of goods

and services, from 12.% per cent in

&!!2 to '1." per cent in &!!'. (hile

this improvement was across all theregions, it was most pronounced in

8/11/2019 ANR_FULL

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case of Africa where it declined from

$".2 per cent to '%.1 per cent

during the period. The ratio has

steadily declined in case of LatinAmer ica ? 5aribbean from a

high of &&2.1 per cent in #$$$ to

$".' per cent in &!!', largely on

account of significant growth in

eports of goods and services.

)verall, the debt9service payments

ratio of the emerging markets and

developing countries improved to

#/.% per cent in &!!' compared to

#".$ per cent in &!!2.

INDIAN EC#N#'(

The Indian economy sustained its

strong performance in &!!'9!1M,

with an estimated growth rate of

$." per cent, improving over the

robust $ per cent growth achieved

in the previous year. The moderation

in agricultural growth in &!!'9!1 was

more than offset by robust

performances by the industry andservices sectors, thus reinforcing

global confidence in these sectors.

A/ric-lt-re

The agriculture ? allied sector

registered a modest &.1 per cent

growth in &!!'9!1, implying a

slowdown from the previous years

' per cent. (hile production of

Gharif foodgrains contracted duringthe year, production of >abi

foodgrains registered a rise.

;oodgrain production is estimated at

&!$.& million tonnes *@T+ during

&!!'9!1, remaining flat compared to

the previous years total of

&!%.' @T. In commercial crops,

particularly in sugarcane production,

there was however, a distinct growth

of #'.$ per cent in the year.

Ind-stry

5ontinuing the healthy performance

of the previous two years, the

industrial production recorded a

robust ##./ per cent growth in

&!!'9!1. rowth was particularly

propelled by the manufacturing

sector, which grew by a strong

#&./ per cent in the year, over and

above the $.# per cent growth

rate achieved in &!!29!'.

The resurgence in the manufacturing

sector was well9supported by a

1.& per cent growth in electricity

sector and a 2.# per cent growth in

mining sector, showing improvement

over previous years performance in

both the cases.

)f the #1 industrial sub9groups in the

manufacturing sector, during&!!'9!1, ten sub9sectors registered

double9digit growth rates. These ten

sectors were beverages, tobacco ?

related products *##./ per cent+,

cotton tetiles *#".% per cent+, tetile

products *including wearing apparel+

*##.& per cent+, wood ? wood

products, furniture ? f itures*&$.# per cent+, rubber, plastic,

petroleum ? coal products

*#&.1 per cent+, non9metallic mineral

products *#&.% per cent+, basic metal

? alloy industries *&&.% per cent+,

meta l p roduct s and parts,

ecept machinery ? e3uipment

*##." per cent+, machinery ?

e3uipment other than transport

e3uipment *#".! per cent+, and

transport e3uipment ? parts

*#".$ per cent+. The only sub9sector

with a negative growth performance

in &!!'9!1 was jute an d

other vegetable f ibre tetiles

*ecept cotton+.

Accord ing to the use9based

classification, the capital goods

sector registered strong growth of

#1.1 per cent during &!!'9!1, ascompared to #2.% per cent during

the previous year. The intermediate

goods sector also registered a

strong growth of ##.1 per cent during

$an% organised a seminar on +#otential for E9port of Agricltral #rodcts from $ihar2M 7tatistics in this section correspond to the Indian fiscalyear, which runs from April to @arch of the net year.

in #atna2 as part of its initiatives to promote agri e9ports0 Shri Amita,h

8/11/2019 ANR_FULL

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irection o0 ndia/s (erchandise Trade*>s. in billion+

2005-06

2400

the Indian economy, the services

sec to r, con tinued i ts good

perf ormanc e dur ing &!!'9!1

registering a robust ##.& per cent

growth rate, improving over the

previous years $.% per cent.The trade, hotels, transport ?

communication sub9sector registered a

continued strong growth of

/!!

!

&"!!

&!!!

#'!!

#&!! #!1$.!

%!!

"!!

&"1.&

///.!

%#/.2

#/!.$

#'%.1

2".% %$.!

2006-07*

300

0

"!!!

/2!!

/!!!

&2!!

&!!!

#2!!

#!!!

#!1%.&

#1#.' #!1.2

"2%.$

&2"'.2

#&1.%

""&.1

#/ per cent, while the financial, real!

estate ? business services grew at a

2$.' #!!.! 2!!

!

#'#.& #%2.1 #/!.2

robust #!.' per cent during &!!'9!1.46*&2+

Africa

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Indias foreign trade in &!!'9!1

*Apri l9;ebruary+, eports were

particularly robust in case of

petroleum products, at '/.# per cent,engineering goods at "#.! per cent,

electronic goods at /&.& per cent,

and agriculture ? allied eports at

&!.% per cent. (hile petroleum, oil

? lubricant *)L+ imports grew by

/".2 per cent during &!!'9!1

*April9;ebruary+, within non9)L

items, significant growth wa s

observed in the case of

metaliferrous ores ? metal scrap

*#&2.1 per cent+, machinery *"#.'

per cent+, gold and silver */&." per

cent+ and electronic goods *&2./ per

cent+.

-uring &!!'9!1, Indias net inflow

of invisibles amounted to 678

"!."% billion *April9-ecember+ as

compared to 678 "&.'' bil lion

during the previous year. Indias

services eports stood at678 2'.1 billion during &!!'9!1

*April9-ecember+, as compared to

678 '#." billion during the previous

year. 7ervices eports remained

strong on account of the steady

growth in software eports *678

.1' billion+ coupled with

substantial growth in eport ofbusiness services *678 #'."$ billion+.

The robust performance of invisibles

trade to some etent offset the

deficit in trade balance, thereby

containing current account deficit

to 678 ##.% billion during &!!'9!1

*April9-ecember+, as compared

to 678 $.#$ bi ll ion during the

previous year.

>eflecting the growing confidence of

the international investors in the

Indian economy, foreign direct

investment inflows grew sharply to

678 #1.12 billion during &!!'9!1,

with around $! per cent of it

attributable to e3uity investments.

7imilarly, corroborating the ongoing

globalisation endeavours of the

Indian industry, during &!!'9!1*April9)ctober+, %1! approvals were

granted to Indian companies for

overseas investments worth

678 '.!/ billion as compared to

%&& approvals worth 678 #.& billion

during the corresponding period last

year.

Indias foreign echange reserves

also went up sharply by

678 "1.2' billion in &!!'9!1 and

stood at 678 #$$.#% billion as at

end9@arch &!!1. ;oreign currency

assets accounted for over

$' per cent of Indias foreign

echange reserves. Indias eternal

debt, which stood at 678 #&'." billion

at end9@arch &!!' increased to

678 #"&.'' billion as atend9-ecember &!!'. The rise in

eternal debt stock was mainly

due to i nc reases i n 4ternal

5ommercial 0orrowings *450s+,

and I deposits. 7hort9term debt

rose marginally to 1.! per cent

of total eternal debt as

at end 9 -ecember &!!' from

'.$ per cent as at end9@arch &!!'.

Outlook 0or Select Sectors

.e9tiles and !arments

The tetile and garment industry

occupies a uni3ue place in the

Ind ian manufac tu ring sector,

contributing significantly to total

industrial output and eports.

At present, the tetile and garment

industry contributes #" per cent of

total industrial production and#/ per cent of the countrys total

eport earnings. The tetile and

garment industry is the second

largest employer in the economy

after agriculture, employing more

than /2 million people directly. After

.rn%ey contract for spply and erection of = %< 8verhead .ransmission 'ine in 'i,ya2 ,einge9ected ,y 5EC International 'td02 a company engaged in design2 fa,rication and installationof po/er transmission to/ers in India and a,road0 E9im $an% e9tended loan and garanteespport for the pro:ect0

the elimination of 3uota restrictions

from &!!2 onwards, the eports

from this sector are increasing

8/11/2019 ANR_FULL

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significantly. -uring the year

&!!'9!1 *AprilN;eburary+, tetile

eports from India were

678 #"."1 billion. This shows agrowth rate of ".2' per cent over

the corresponding period during the

previous year. The 46 and the 67A

continue to be the leading eport

destinations for Indian tetiles

and readymade garments.

The government has taken a

number of initiatives to make

this sector globally competitive.

These include rationalisation of the

duty structure, allowing #!! per cent

;-I under the automatic route,

de9reservat ion o f readymade

garments, hosiery and knitwear

sector, launching of Technology

6pgradation ;und 7cheme. In

the 6nion 0udget &!!19!%, the

allocations under 7cheme for

Integrated Tetiles arks *7IT+ and

Technology 6pgradation ;und *T6;+

schemes have been increasedsubstant ial ly . 0esides, the

overnment has also announced

the inclusion of additional #!!9#2!

c lusters unde r t he 5luster

-evelopment rogramme for the

tetile sector.

Drgs and #harmaceticals

The Indian pharmaceutical industry

manufactures almost the entire

range of therapeutic products and

i s capab le o f p roducing ra w

materials for manufacturing a wide

range of bulk drugs from the basic

stage. The industry leverages upon

its inherent strengths such as cost

competitiveness, including >esearch

and -evelopment *>?-+ cost,

strong manufacturing base, well

established network of laboratories

with >?- infrastructure, strong

marketing and distribution network

and competence in chemistry and

process development to emerge

as a global player.

The global pharmaceutical salesin &!!' were estimated to have

crossed 678 '2! bill ion,

recording growth of 1 per cent

over the previous year. It is further

estimated that in the year &!!1,

the pharmaceutical industry is

epected to witness a growth of29' per cent to reach a sales level

of 678 '%2 billion. It is estimated

that the geographic balance of the

pharmaceutical market is epected

to shift away from the 67A to

emerging markets that are epected

to contribute /! per cent of

estimated growth for the year &!!1.

iven the increase in the resources

re3uired for various operations in

the pharmaceutical value chain,

global pharmaceutical majors are

increasingly focusing on their core

competencies and outsourcing part

of their other activities. (ith the

new patent regime in place, Indian

companies are significantly

increasing their >?- ependiture

as also their capital ependiture,

mainly oriented towards 679;-A

approvals for plants. Indian companies

have been at the forefront, both in

terms of filing of -rug @aster

;iles and

Abbreviated

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to the or iginal e3uipment

manufacturers *)4@+ market, and

thereby climb up the value chain.

The Indian auto9component sectorproduces a comprehensive range of

products. The total value of

production has increased from

around 678 " billion during &!!!9!#

to 678 #! billion during &!!29!',

thus witnessing a compounded

annual growth rate of &! per cent.

4port of auto9components

amounted to 678 #.% billion during

&!!29!'. -eveloped country

markets like the 67A and the 46

together account for over

2! per cent of the total eport

earnings. Automotive @ission lan

estimates that Indias eport of

auto9components could eceed

678 &! billion by &!#2. The growing

domestic market, fue lled by

increased consumer base and easy

financing available to purchase

vehicles, is epected to cater to the

growth of the automobile industry.

ro jected epor t growth an d

increase in demand for vehicles in

the domestic market are epectedto help stimulate the growth of the

Indian auto9component sector.

Food #rocessing

The food9processing industry is

critical for economic development of

India as it establishes a vital linkage

between the two main components

of the Indian economy, viJ., industry

and agriculture. The siJe of the

Indian food processing industry is

estimated at around >s / trillion,

l argel y domina ted by th e

unorganised sector. The industry

accounts for #" per cent of the total

manufacturing output and employs

#.' mn workers.

India holds significant level of world

production of various agriculture

products and provides indigenousavailability of raw materials for food

processing. India is the largest

producer of milk, second largest

producer of fruits and vegetables,

third largest producer of food grains

and fish. @ajor components of theIndian food processing industry are

dairy products, processing of grains

and cereals, fruits and vegetables,

meat and poultry, fisheries, and

manufacturing of packaged C

convenience foods and beverages.

According to the Agriculture )utlook

*&!!'9#2+, jointly prepared by the

)rganisation for 4conomic

5ooperation and -evelopment

*)45-+ and the 6nited

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produces several thousands of

products and by9products, ranging

from plastics and petrochemicals to

cosmetics and toiletries. A significant

share *around one9thi rd+ of

production by chemical industry is

consumed by the industry itself.

Accord ing to (orld Trade

)rganisations data, world eport

of chemicals amounted to

678 %/& billion in &!!2. The share

of chemicals in global merchandise

t rade and g lobal t rade of

manufactures stood at % per cent

and ## per cent, respectively, in

&!!2. The growth as well as volume

of chemicals trade is epected to

grow further. Indias per capita

consumption of chemicals is also

poised for growth in the near future

due to wider application of chemicals

in a range of sectors.

Engineering !oods

India has a well 9diversif iedengineering goods sector that

produces products such as

automobiles and auto components,

capital goods C machinery and

e3uipment, light engineering goods.

The Inde of Industrial roduction

*II+ computed by the 5entral

7tatistical )rganisation, overnment

of India shows positive growth for

sectors such as light engineering

goods, metal products, machinery

and transport e3uipments. Increasing

manufacturing activity in Indian

economy, coupled with growing thrust

on development of infrastructure are

prime reasons for the impressive

growth rate of this sector.

The per fo rmance o f Indian

engineering industry in the eternal

markets is also positive. Indias

eport of engineering goods has

increased from 678 #'.%' billion

during the period April N ;ebruary&!!29!' to 678 &/.#1 billion during

Apri l N ;ebruary &!!'9!1 thus

showing a growth rate of over/1 per cent.

Electronics

Indian electronics industry has

grown at a 5A> of over

#& per cent in the last five years.

4ports by the electronics industry

are also showing increasing trend,from a level of 678 #.% billion during

&!!"9!2 to 678 &.& billion during

&!!29!'. -uring Ap ri l9 ;ebrua ry

&!!'9!1, eports of electronics

from India increased by /& per cent,

over the previous year, to reach

67 8 & .2& bil lion. T he total

production of the electronics industry

has increased from >s. 2'' billion

in &!!29!' to >s. ''! billion in

&!!'9!1. The biggest segment of the

electronics industry is consumer

electronics, which contributes about

/! per cent of the total production.

This sector has registered a growth

of about ## per cent in &!!'9!1.

The faster growing segments among

consumer electronics are colour T,

-- players and home theatre

systems. EighNend products l ike

lasma -isplay anels and Li3uid5rystal -isplay T s have also

registered significant growth in the

Indian market during &!!'9!1.

5omputer industry accounts for

#$ per cent of the electronic goods

industry. The booming IT sector,

increasing computerisation of telecom,

banking and financial services and

e9governance initiatives by the

government have encouraged the

growth of this segment significantly.

The industry could leverage upon the

formidable brand e3uity achieved bythe Indian software industry in the

global markets.

#etrolem #rodcts

India is establishing its prowess

in petroleum refinery sector, and

is becoming a leading eporter

of petroleum products. 7ince

&!!!9!#, eports of petroleum

products have been increasing not

only by volume but also in rankingin Indias top eport products. -uring

the period April 9 ;ebruary &!!'9!1,

Indias eport of petroleum products

amounted to 678 #'.%$ billion, a

growth of 2$ per cent over the same

period during the previous year.

Accord ing to the Fis ion &!&!

document, the oil demand is

epected to reach &"2 million tonnes

by &!&!, largely driven by the growth

in transportation industry. To meet

the growing demand for petroleum

products, the refining capacity in

India has been gradually increasing

9 by setting up of new refineries in

the country as well as epanding the

capacity of the eisting refineries.

(ith #$ refineries, the domestic

refining capacity in -ecember &!!'

was at #"%.$1 million tonnesper annum. Indian producers have

also intensified their eploration

efforts and going for ac3uisition of

oil reserves abroad for development

and production. In addition, Indian

companies are setting up marketing

network abroad, in order to achieve

greater economies of scale and

enhance their competitiveness.

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Policy En%ironment

To provide further momentum to

Indias eports, which have crossed

the # per cent share of globaleports in &!!', the annual

7upplement &!!1 to the ;oreign

Trade olicy &!!"9!$ aims to

provide, among others, further boost

to agro eports, diversification of

eport markets, as also facilitate

Indias services eports. 0esides

providing encouragement to agro

eports and employment generation

in the agricultural sector, an initiative

for infrastructure development foragro sector is being launched.

The scope of ;ocus @arket 7cheme

is being epanded to include #' new

countries including #! 5I7 countries.

4ports and employment in the

Eandloom and Eandicrafts sector

have also been provided further

impetus through duty free access to

tools, machinery and e3uipment.

(ith a view to facilitate Indias

servi ces epor ts , servi ce ta

eemption C remission on services

rendered in India and utilised by

eporters has been provided, while

services rendered abroad an d

charged on eporters from India

have been eempted from service

ta.

In view of the growing concern on

inflation, the >eserve 0ank of India

*>0I+ undertook a number of policymeasures during &!!'9!1 directed

towards curbing credit growth to

volatile sectors. The provisioning

re3uirements for standard advances

for a number of categories such

as personal loans, capital market

eposures and commercial realestate loans were increased

from !." per cent to # per cent.

The reverse repo rate was raised

twice by &2 basis points during the

year to ' per cent and the repo rate

was increased in phases from'.2 per cent to 1.12 per cent. The

5ash >eserve >atio *5>>+ was also

increased gradually by #!! basis

points to ' per cent during the year.

>0I also indicated a further increase

of 2! basis points in the 5>> during

April &!!1.

( ith regard s t o prudentialmeasures, >0I has advised

commerc ia l banks *ecluding>egional >ural 0anks+ to adopt a

standardised approach for credit riskand basic indicator approach for

operational risk. In the ne wapproach, banks are re3uired to use

risk weights, which are dependenton credit ratings. ;oreign banks

operating in India and Indian bankshaving presence outside India are

to comply with 0asel II with effectfrom @arch /#, &!!%, whilethe deadline for scheduledcommercial banks has been kept at

@arch /#, &!!$. ;urther, theprudential l imit on credit and

non9credit facilities etended bybanks to Indian Hoint entures *Hs+

C (holly )wned 7ubsidiaries *()7+

abroad was enhanced from#! per cent to &! per cent of

unimpaired capital funds *Tier I and

Tier II capital+ of the bank.In the eternal sector, conse3uent to

the recommendations of the5ommittee on ;uller 5apital Account

5onvertibility, >0I initiated a series

of measures during the year including

setting up of an internal task forcefor procedural rationalisation and

simpl if icat ion, enhancing theoverseas remittance limit by resident

individuals by 678 &2,!!! to

678 2!,!!! per annum and furtherto 678 #,!!,!!! in April &!!1,

permitting all categories of foreign

echange earners to retain#!! per cent of the fore earnings intheir 4change 4arners ;oreign

5urrency *44;5+ accounts,liberalising procedures for project and

service eports, enhancing overseasborrowings by banks, increasing the

access to eternal commercialborrowings, permitting ;IIs to invest

in government securities by an

incremental amount of 2 per cent oftotal net issuance in the previousyear, enhancing the ceiling ofoverseas investment by mutual funds

by 678 # billion to 678 / billion,

and liberalising the regulationsrelated to forward contracts.

(ith respect to customs duties, the

6nion 0udget &!!19!%, furtherreduced the peak rate fornon9agricultural products f rom

#&.2 per cent to #! per cent.Also, the same for most chemicalsand plastic items were cut from#&.2 per cent to 1.2 per cent and

for seconds and defectives of steelfrom &! per cent to #! per cent.5oking coal and dredgers are to

be fully eempted from customduties and import duty of medical

e3uipment has been reduced to1.2 per cent. Import duty has also

been reduced for a number ofin ter medi ar y te t il e i tems,agricultural e3uipment, edible oilsand machinery for pharmaceutical

? biotechnology sectors. Eowever,

a duty of / per cent was leviedon all private import of aircraftsand additional duty of >s. /!!

per metric tonne was imposed

on eport of iron ores andconcentrates.

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India: $ast $or+ard(Ma:or #olicy Changes dring ?"*)

O >everse repo rate raised twice by &2 basis points during the year to ' per cent and reporate increased in phases from '.2 per cent to 1.12 per cent. 5ash >eserve >atio *5>>+also increased by #!! basis points, in phases, to ' per cent during the year.

O ;oreign banks operating in India and Indian banks having presence outside India tocomply with 0asel II with effect from @arch /#, &!!%, while the deadline for scheduled

commercial banks kept at @arch /#, &!!$.

O eak rate of customs duty on non9agricultural products reduced from #&.2 per cent to#! per cent.

O 5ustoms duty on a number of raw materials and intermediates, including chemicals andplastic items, seconds and defectives of steel, intermediary tetile items, agricultural

e3uipment, edible oils and machinery for pharmaceutical ? biotechnology sectors reduced.

O Annual 7upplement &!!1 for the ;oreign Trade olicy &!!"9!$ aims to provide, amongothers, further boost to agro eports, diversification of eport markets, as also facilitate

Indias services eports.

1 ;IIs permitted to invest in government securities by an incremental amount of 2 per centof total net issuance in the previous year.

O 5eiling of overseas investment by mutual funds raised by 678 # billion to 678 / billion.

O rocedures for project and service eports liberalised: overseas borrowings by banksenhanced: access to eternal commercial borrowings increased.

O )verseas remittance limit by resident individuals increased by 678 &2,!!! to678 2!,!!! per annum, and further to 678 #,!!,!!! in April &!!1.

Credit

%olic"

Trade

%olic"

nvestment

%olic"

Overseas

nvestment

%olic"

8/11/2019 ANR_FULL

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Directors !e*ortThe -irectors are pleased to present

the report of the working of the 0ank

with the audited 0alance 7heet and

accounts for the year ended

@arch /#, &!!1.

RE'E2 O- O%ERATONS

-uring &!!'9!1 *April9@arch+, the

0ank approved loans aggregating

>s. &'1.'& billion under various

lending programmes as against

>s. &!".%$ billion during the year

&!!29!' *April9@arch+, registering a

growth of /# per cent. -isbursements

during the year were >s. &&!.1' billion

as against >s. #2!./$ billion during

&!!29!', representing "1 per cent

growth. ross loan assets

as on @arch /#, &!!1 were

>s. &/&.1" billion, registering an

increase of &$ per cent over the

previous year. -uring the year, the

0ank sancti oned guarantees

aggregating >s. "$.$% billion as

>s. /".!& billion as on

@arch /#, &!!'. >upee loans and

advances accounted for 2' per cent

of the total loan assets as on

@arch /#, &!!1 while the balance

"" per cent were in foreign currency.

7hort9term loans accounted fo r

&2 per cent of the total loans and

advances as on @arch /#, &!!1.

The 0ank registered profit before

ta of >s. /.$# billion on account

of eneral ;und during &!!'9!1 as

against a profit of >s. /.11 billion

for the year &!!29!'. Af te r

providing for income ta of

>s. !.$& billion, profit after ta

amounted to >s. &.$$ billion during

&!!'9!1 as against >s. &.1# billion

during &!!29!'. )ut of this profit,

an amount of >s. #."" billion is

transferred to >eserve ;und. Inaddition, the 0ank has transferred

>s. #!! mn . to Investment

;luctuation >eserve, >s. #!! mn

rofit before ta of the 4port

-evelopment ;und during &!!'9!1

was >s. &/.'# mn as against

>s. #$. mn during &!!29!'. After

providing for ta of >s. 1.$2 mn,

the post ta profit amounted

to >s. #2.'' mn as against

>s. #&.1" mn during &!!29!'.

The profit of >s. #2.'' mn is carried

forward to net year.

)SNESS O%ERATONS

>ev iew o f 0ank s businessoperations is presented belowunder the following headsD

I. rojects, roducts and 7ervices4ports

II. 0uilding 4port 5ompetitiveness

III. Hoint entures

I. s. "/.&' billion in &!!29!'.

uarantees issued during the period

to 7inking ;und and >s. "!! mn to

7pecial >eserve uCs /'*#+*viii+ of

I=. >esearch and Analysis

=. Euman >esources @anagement

amounted to >s. #'.$1 billion as th e Income Ta Ac t, #$'#. =I. rogress in Implementation of

against >s. .$' billion in &!!29!'. The balance of >s. $2' mn was the )fficial Language olicy

uarantees in the books of the transferred to overnment of India =II. >epresentation of 7cheduled

0ank as on @arch /#, &!!1 *)I+ as provided in the 5astes, 7cheduled Tribes and

were >s. /2./' billion as against 4im 0ank Act. )ther 0ackward 5lasses.

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. %RO3ECTS, %ROCTS AN

SER'CES E4%ORTS

Ex*ort Contracts

-uring the year, %&! contracts

amounting to >s. #%".$ bill ion

covering $/ countries, were secured

by #1& Indian eporters with 4im

0anks support, as against 2'%

contracts worth >s. #/2./ billion

covering '" countries, secured by

#1" Indian eporters during the

previous year. 4im 0ank C (orking

roup# accords clearance to such

eport contracts. )f these, 21

contracts valued at >s. #"!.& billionwere project eport contracts,

comprising civil construction, turnkey

and consultancy contracts.

The balance were trade finance

oriented supply contracts.

The contracts secured during the

year with 4im 0anks support

consisted of /2 turnkey contracts

valued at >s. $/.% bill ion,

#& construction contracts valued at

>s. "/.' billion, '"1 supply contracts

valued at >s. /!." bill ion,#! technical consultancy an d

services contracts valued at

>s. &.1 billion. A number of contracts

valued at >s. #"." billion, were

secured under Lines of 5redit etended

by 4im 0ank.

7ome major turnkey contracts

secured during the year included

mechanical, erection and plumbing

)ank/s (a!or %ro&rammes

E4%ORT CRE.T

>)H45T7

76LI4>7PC064>7P

5>4-IT

>497EI@44-IT

6A>A)-65T7

LI4-IT

>497EI@44-IT

)7T97EI@44-IT

6A>AI547

76LI4>7P 5>4-IT

064>7P 5>4-IT

-NANCE -OR E4%ORT

ORENTE ,N.TS

T4>@ L)AGIT @A>G4TIT >)-65T -44L)@4T ;A5ILITATI)74A7 IAeserve 0ank of India, 4port 5redit uarantee 5orporation of

India Ltd., overnment of India and commercial banks. It functions under the auspices of 4im 0ank.

8/11/2019 ANR_FULL

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works for 5ity 5entre project,

0ahrain: &! @( gas turbine

power plant project in 0angladesh:

// k distribution lines in 4thiopia:2!! k o verhead p ow er

transmission line in GaJakhstan:

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uarantees sanctioned and issued

during the year amounted

to >s. "$.$% billion and

>s. #'.$1 billion respectively, asagainst >s. "/.&' billion an d

>s. .$' billion during the previous

year. These guarantees pertain to

overseas projects in sectors such as

power generation, transmission

and d is tr ibut ion, infrastructure

development and eport obligation

guarantees.

B-yers Credit0uyers 5redit is a uni3ue

programme of 4im 0ank under

which the 0ank facilitates Indian

eports by way of etending credit

facility to the overseas buyers for

financing their imports from India.

6nder 0uyers 5redit rogramme,

4im 0ank makes payment of

eligible value to Indian eporters,

without recourse to them. 0uyers

5redit is a safe and non9recourse

mode of financing option available

to Indian eporters, especially to

small and medium enterprises, and

motivates them to enter overseas

markets.

-uring the year, the 0ank etended

0uyers 5redit facility to #& overseas

companies aggregating >s. ' billion.

-isbursements under 0uyers

5redit rogramme aggregated

>s. ".#/ bill ion for eports to

countries that include 0raJil, Italy,

7ingapore, 7outh Africa, 7ri Lanka,

Thailand, 6nited Arab 4mirates and

6nited 7tates of Am er ic a.

The products eported under the

0uyers 5redit rogramme included

transport vehicles ? auto spare

parts, fruits ? vegetables, plain ?

studded jewellery, steel ? steel

products, incense sticks, cement

clinker, petrochemical products,

pharmaceuticals, readymade

garments etc. #$/ contracts weresupported under the 0uyers 5redit

rogramme and /1 eporters from

small and medium enterprises were

the beneficiaries under the 0uyers

5redit rogramme to receive

non9recourse payment.

"ines of Credit

The 0ank lays special emphasis on

etension of Lines of 5redit as an

effective market entry mechanism,

especially for small and medium

enterprises. 4im 0ank etends

Lines of 5redit *L)5s+ to overseas

f inancia l inst itut ions, regional

development banks, sovereign

governments and other entitiesoverseas, to enable buyers in those

countries to import projects, goods

and services from India on deferred

credit terms. Indian eporters can

obtain payment of eligible value from

4im 0ank, without recourse to

them, against negotiation of shipping

documents. L)5 is a financing

mechanism that provides a safe

mode of non9recourse financingoption to Indian eporters, especially

to small and medium enterprises.

0eing in an increasingly competitive

environment, 4im 0ank is

proactively seeking to epand

geographical reach and volumes

under the L)5 rogramme. 0esides

its own L)5s to overseas entities,

4im 0ank, since &!!/9!", also

etends and operates, at the behestof and with the support of the

overnment of India, L)5s to

countries in the developing world.

A ne/ prodction nit ,eing set p in Shar:ah ,y Elan Incorporated2 F@E2 /holly o/neds,sidiary of .ime .echnoplast 'td02 /ith financial spport of E9im $an% for manfactre ofli7id pac%aging (1D#E Drms) and other plastic molded prodcts0

-uring the year, the 0ank etended

#' L)5s, aggregating 678 2"& mn,

to support epor t o f projects,

goods and services from India.

L)5s etended by 4im 0ank

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during the year include L)5s to

45)(A7 0ank for Investment and

-evelopment *40I-+, (est Africa:

Eungarian 4port9Import 0ank,Eungary: TA 0ank, Africa: 0ank

vehicles, cement plant, sugar plant,

upgradation of railway system,

setting up traffic signalling system

and renovation of refinery. As of@arch /#, &!!1, 1/ L)5s covering

"oans to Ex*ort #riented Units

-uring the year, the 0ank approved

term loans of >s. #$.!% billion to

'$ eport oriented units.-isbursements amounted to

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@arkaJi Homhouri Islami, Iran:

@yanma ;oreign Trade 0ank,

@yanmar: 0ancR de 5omercio

%/ countries in Africa, Asia, 5I7,

4urope and Latin America, with

credit commitments aggregating

>s. #&.'$ billion. 6nder roduction

43uipment ;inance rogramme,

loans aggregating >s. 2.!' billion4terior de 5olombia, 5olombia: 678 &./ billion were available to &! eporting companies were

overnments of 4thiopia, Angola, for utilisation, while a number approved for financing ac3uisition of7eychelles, @oJambi3ue, Eonduras, of prospect ive L)5s were at production e3uipment. -isbursements

uyana, uinea90issau, Hamaica, various stages of negotiation. amounted to >s. /.%! bill ion.

7enegal and 7udan. These L)5s Long term working capital loans

will finance and catalyse eports by . )+N# E4%ORTaggregating >s. #%.#' billion to

way of energy transmission andCO(%ETT'ENESS

&$ companies, were approved.

distribution project, electrification

projects, eport of mango juice and

tomato paste processing unit,

tractors and water pumps fo r

development of the agricultural

sector, supply of food processing

e3uipment for (omen overty

Alleviat ion programme, supply of

technical and laboratory e3uipment,

scien ti fi c e3u ipments, solar

electrification project, commercial

The 0ank operates a range of

financing programmes aimed at

enhancing eport competitiveness of

Indian companies. -uring &!!'9!1,

0ank approved loans aggregating

>s. #/&.'# billion under various

programmes for enhancing eport

competitiveness. -isbursements

amounted to >s. #!1.$' billion under

these programmes.

-isbursements amounted to

>s. #1.!# billion.

Technolo/y U*/radation $-nd

Scheme 0TU$S1

4im 0ank is one of the nodal

agencies appointed by )I, @inistry

of Tetiles, to establish and approve

eligibility of projects under T6;7,

and release subsidy directly

to the approved projects. As on

@arch /#, &!!1, the 0ank has

accorded approval for #/% projects

with aggregate cost of >s. %/.#/

billion. Loans approved anddisbursed aggregated >s. &2./'

billion and >s. #'.## billion,

respectively. The 0anks assistance

under T6;7 to the tetile industry

has been spread over var ious

segments in tetile manufacturing

and processing,

covering several states in India.

'ine of Credit agreement for 4S mn to !overnment of Mo6am,i7e /as signed at ;e/Delhi ,y the Mo6am,i7e 1igh Commissioner2 Mr0 Carlos Agostinho do 3osario0

#%erseas In%estment $inance

Pro/ramme

The 0ank has a comprehensive

range of programmes in terms of

e3uity finance, loans, guarantees

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and advisory services to support

Indian outward investment. -uring

the year, &$ proposals for funded

%ro!ect Export Contracts under execution as on(arch 89, :;;s. 1./ bn+/B *>s. ##./ bn+

'B *>s. .2 bn+

&/B *>s. %/.' bn+

##.'B *>s. "&./ bn+

!."B *>s. #.' bn+

2"B *>s. #$$.% bn+

Total = Rs. 8>

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Import Finance #rogramme

6nder Import ;inance rogramme,

term loans aggregating

>s. #".&1 billion were approved.-isbursements amounted to

>s. 2. billion.

Credit 'onitorin/ &ro-*

A dedicated Loan >ecovery roup

takes proactive steps for recovery

as per the 0oard approved Loan

@onitoring and >ecovery olicy.

A system of A05 classification of

loan accounts is in place, based on4arly (arning 7ignals and monthly

review of 7tressed As se ts

by a separate 5ommittee.

An independent 7c re en in g

5ommittee comprising a retired

Hustice and two eminent persons

with rich eperience in the fields of

law and banking has been

constituted for eamining all )ne

Time 7ettlement *)T7+ proposalsand sale to Asset >econstruction

5om panies. T he 5ommittee

submits its recommendation for

consideration by the 0oard.

. 3ONT 'ENTRES

lobal Trade ;inance Limited *T;+

a joint venture, promoted by 4im

0ank, which has as its othershareholders, ;I@ 0ank, @alta:

International ;inance 5orporation

*I;5+ (ashington and 0ank of

@aharashtra, achieved a turnover

of >s. '&.#" billion and a net profit

of >s. &%%.1 mn in &!!'9!1. T; is

the only provider of international

factoring, domestic factoring and

forfaiting services under one roof inIndia. T; has established itself as

a market leader in international

factoring providing value added

services to its clients. The focus of

T;s activities is on market driven

eport9financing solutions for small

and medium9siJed Indian firms.

The 0anks other joint venture,

lobal rocurement 5onsultants

Ltd. *5L+, recorded yet another

year of profitable operations.

The com pany recorded a

consultancy income of >s. &2.& mn

in &!!'9!1 with a pre9ta profit of

>s. 1.$1 mn. 5L is a joint venture

between 4im 0ank and #/ other

reputed private and public sector

companies with epertise in diversefields. 5L provides procurement

related advisory and auditing

services, primarily for projects

funded by multilateral agencies in

various developing countries.

'. NE2 NTAT'ES

2oint ent-re +ith 3hadi and

illa/e Ind-stries Commission

The 0ank is in discussion with

the Ghadi and illage Industries

5ommission *GI5+, to set up a

joint 4port @arketing )rganisation

that will contribute to capacity

building of grassroots business

enterprises and promote eports of

products from rural enterprises

thereby resulting in inclusive growth.The 0ank would help GI5 in

identifying products with eport

potential, countries keen on

importing such products an d

interested buyers abroad. The

project will have an initial investment

of >s. 2! mn, of which >s. &! mn

each will be contributed by

4im 0ank and GI5 with the

balance >s. #! mn to be subscribed

by a number of

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!-ral &rassroots B-siness

Initiati%es

The 0ank has introduced an

innovative faci l ity to supportglobalisation of rural Industries

through its rassroots 0usiness

Initiative. The rogramme builds

upon the 0anks other support

programmes and seeks to address

the needs of relatively

disadvantaged sections of society

while creating epanded

opportuni tie s for tradit ional

craftspersons and artisans, and ruralentrepreneurs of the country.

Towards this end, 0ank ha s

consciously sought to establish,

nurture and foster a variety of

institutional linkages. )ne such

eam ple is a coopera ti on

arrangement with the 5onfederation

of ural India *5I+,

a non9profit organisation with

membership of 2!!!

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would be transferred to other

developing countries, an d

Active +ines o0 Credit as on (arch 89, :;;I7IL and I5>A. As on@arch /#, &!!1, outstanding >upee

borrowings including bonds and

commercia l papers amounted to

>s.#"2./" billion. -uring &!!'9!1, the

0ank raised total resources of

varying maturities aggregating

>s. #!'. billion comprising rupee

resources of >s. '".'# billion and

foreign currency resources of

678 $21 mn e3uivalent. ;oreigncurrency resources raised during the

year included 678 &'$ mn

e3uivalent by way of second issue

of 7amurai bonds C ;>s. /.11 billion and >s. &.1# billion,

respectively. 0usiness income

comprisin g interest , discount,

echange commission, brokerage

and fees during &!!'9!1 was

>s. #".2# billion as compared to

>s. #!."% bi ll ion in &!!29!'.

Investment income, interest on bank

http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/http://www.gnexid.org/

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deposits etc. during &!!'9!1

was >s. 2.#& billion as compared

to >s. ".#! bill ion in &!!29!'.

Interest ependiture in &!!'9!1at >s. #2.#2 billion was higher by

>s. ".%1 b il l ion.

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etc. The 0ank uses f inancial

derivative transactions for raising

cost effective funds and hedging its

balance sheet eposures, with theobjective of reducing market risks.

The 0ank is a member of the Indian

;inancial 0I C 0oard.

;or structural li3uidity, time bucket9wise

and cumulative negative gap limits

have been stipulated along with stress

testing norms, while interest9rate

sensitivity analysis is carried out both

f rom the Uearnings perspectiveV

*sensitivity of net9interest income to

market rate movement+ and from the

Ueconomic va lue perspectiveV

*sensitivity of networth to movement

in market rates by means of duration

gap analysis+. alue9at9risk is

computed for the 0anks held9for9

trading and available9for9sale portfolio

of )I securities. The 0ank also

contracts derivatives as part of its

AL@ eercise for hedging the interest9

rate eposure on specific underlying

assetsC liabilities or in the overall AL@

position. The ;@5 decides on the

investments C disinvestments and

raising of

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borrowings C resources as per the

;und @anagement C >esources

lan approved by the 0oard at

the beginning of each financial year.The functioning of AL5) C ;@5

is overseen by the Audit 5ommittee

and @anagement 5ommittee of

the 0oard of -irectors on periodic

basis.

!isk 'ana/ement

The 0ank has const ituted an

In tegrated > isk @anagement

5ommit tee * I>@5+ which isindependent of operating groups

and reports directly to the top

management. The I>@5 reviews the

0anks risk management policies in

relation to various risks *portfolio,

li3uidity, interest rate, off9balance

sheet and operational risks+,

investment policies and strategy,

and regulatory and compliance

issues in relation thereto. The I>@5oversees the operations of the Asset

Liability @anagement 5ommittee

*AL5)+, the ;unds @anagement

5ommittee *;@5+ and the 5redit

>isk @anagement 5ommittee

*5>@5+, all of which have cross9

functional representation. (hileAL5) deals with issues relating to

AL@ policy and processes and

analyses the overall market risk

*li3uidity, interest9rate risk and

currency risk+ of the 0ank, 5>@5

deals with credit policy an d

procedures and analyses, manages

and controls credit risk on a bank9

wide basis. All loan proposals

a re rou ted t hrough t he >isk@anagement roup which evaluates

the risk profile of the proposals and

provides input to the approving

authority. -uring the year, the 0ank

as part of i ts focus on further

improving asset 3uality and credit

appraisal, undertook the

development and implementation of

a new, advanced 5redit >isk @odel

*5>@+ that would replace the 5redit

rading @odel currently in use.

The new 5>@ will benefit the 0ank

through an improved credit appraisal

process as well as superior portfolio

management capab il it y. Th e

0ank has also set in place a

0usiness 5ontinuity and -isaster>ecovery lan which is periodically

reviewed.

Asset ;-ality

As per >0I prudential norms for

;inancial Institutions a credit C loan

facility in respect of which interest

and C or principal has remained

overdue for more than $! days,

is defined as a

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of net loans and advances as at

@arch /#, &!!1, sub9standard

assets worked out to !."1 per cent,

doubtful assets worked out to!.!/ per cent while loss assets

have been fully provided for.

Internal A-dit

The Internal Audit function of the

0ank is overseen by the

Audi t 5ommit tee *A5+ of the

0oard of -irectors. A three tier

system of review of audit

observations involving anAudi t 7creening 5ommittee,

5ommittee of 4ecutives and the

Audi t 5ommit tee is in place.

The A5 meets at least si times in

a year. )bjective of the 0anks

A5 is to provide direction to the total

audit function of the 0ank in order to

enhance its effectiveness as a

managem ent tool and to follow9up

on all issues raised in thestatutoryCeternal audit reports and

>0I inspection reports.

3(C, A'" and P'" meas-res of

the Bank

The 0ank has put in place a policy

approved by the 0oard on FGnow

our 5ustomer *G5+, Anti @oney

Laundering *A@L+ and revention of

@oney Laundering *@L+ measures

of the 0ank. The olicy conforms to

>0I guidelines in the matter.

The G5, A@L ? @L policy covers

*a+ 5ustomer Acceptance olicy

*b+ 5ustomer Identification rocedure

*c+ @onitoring of Transactions

*d+ >isk @anagement *e+ G5 for

eist ing customers. All the

customers of the 0ank are subjected

to minimum G5 standards, which

establish the identity of the naturalC

legal person and those of the

Fbeneficial owners. The 0ank

obtains data re3uired for ensuring

compliance by its counter party

banks with regard to G5 norms

through a suitable 3uestionnaire.

4im 0ank maintains information in

respect of certain transactions in

accordance with the procedure and

manner as may be specified by >0I

and 740I, as the case may be, from

time to time and the records aremaintained for a period of ten years

from the date of the transaction. The

0ank has appointed a rincipal

)ff icer for G5, A@L and @L

measures of the 0ank. The G5 ?

A@L olicy is on the 0anks website.

$air Practices Code for "enders

The 0ank has in place, a 0oard

approved policy on ;air ractices5ode for Lenders framed in line with

>0I guidelines.

'. N-OR(ATON AN A'SOR

SER'CES

The 0ank provides a wide range of

information, advisory and support

services, which complement it s

f inancing programmes. Theseservices are provided on a fee basis

to Indian companies and overseas

entit ies. The scope of services

includes market9related information,

sector and feasibi l i ty studies,

technology supplier identification,

partner search, investment

facilitation and development of joint

ventures both in India and abroad.

E9im $an% is the only Indian isser sccessflly issing ,onds in the Samrai mar%et0 .hesecond Samrai $ond offering /as lanched in 8cto,er ?2 in .o%yo2 and /as the largestSamrai offering from India in the past B years0

-uring the year, the 0ank provided

a range of services to companies.

Information in the form of lists of

importers C eporters across different

industries, and technical information

on UI) 5ertif icateV with

respect to guidelines for eport of

commodities to 0raJil were provided

to eporters.

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'-ltilateral $-nded ProAS $an% for Investment & Development(E$ID) at the conclave on India"Africa #ro:ect #artnership in Accra2 !hana0 Mr0 ChristianAdovelande2 #resident of E$ID2 signed the '8C agreement in the presence of the visiting IndianMinister of State for E9ternal Affairs2 Shri Anand Sharma0

@emoranda of 5o9operation, to

identify opportunities for trade and

investment for Indian companies.

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Seminars and )orksho*s

The 0ank organised a number of

focussed seminars and workshops

to highlight its initiatives in several

areas, to keep its constituents

abreast of developments and to

create a facilitating environment for

promoting trade and investment.

Amongst the key programmes

organised was the FIndia N Africa

roject artnership 5onclave at

eg ion was organ ised at

Ahmedabad, Golkata, 5oimbatore,

Eyderabad and

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between smal l and medium

enterprises in the @idlands, 6G and

India.

An @)5 to improve cooperation andto provide support to grassroots

enterprises and 7@4s was signed

by the 0ank with the International

;inance 5orporation *I;5+, and

5II N

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0ank has developed and launched

a website *www.gneid.org+

fo r loba l ? - 5apabilities in

India: 5I7 >egionD A 7tudy of IndiasTrade ? Investment otential:

and Indian 5hemical IndustryD

A 7ector 7tudy. -uring the year,

0ank also published a (orking

aper titled UIndian 5onstruction

IndustryD )pportunities AbroadV.

-r. -avid Eulme, rofessor of

-evelopment 7tudies and ;ounder

-irector o f 5hronic overty