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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
8/11/2019 ANR_FULL
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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
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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
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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
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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
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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"
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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/8/11/2019 ANR_FULL
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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