EXPORT AND IMPORT BANK OF INDIA

1) Introduction:-

Export-Import Bank of India is the premier export finance institution of the

country. It commenced operations in 1982 under the Export-Import Bank of

India Act 1981. Government of India launched the institution with a

mandate to not just enhance exports from India, but also to integrate the

country’s foreign trade and investment with the overall economic growth.

Exim Bank of India has been both a catalyst and a key player in the

promotion of cross border trade and investment. Commencing operations as

a purveyor of export credit, like other Export Credit Agencies in the world,

Exim Bank of India has evolved into an institution that plays a major role in

partnering Indian industries, particularly the Small and Medium Enterprises

through a wide range of products and services offered at all stages of the

business cycle, starting from import of technology and export product

development to export production, export marketing, pre-shipment and post-

shipment and overseas investment.

The Exim bank is fully owned by the government of India and is

managed by a board of directors with representation from government,

financial insidious, bank and business community. The operations are

grouped into project finance, trade finance and overseas investment finance,

supported by planning and coordination groups.

Exim Bank has two broad business streams: one, the traditional export

finance typical of export credit agencies around the world and two, financing

of export oriented units (export capability creation), which are non-

traditional for export credit agencies. Since inception, Exim Bank has been

the principal financial institution in the country for financing project exports

and exports on deferred credit terms.

Exim Bank extends funded and non-funded facilities for overseas turnkey

projects, civil construction contracts, technical and consultancy service

contracts as well as supplies.

Turnkey Projects are those which involve supply of equipment along

with related services, like design, detailed engineering, civil

construction, erection and commissioning of plants and power

transmission & distribution

Construction Projects involve civil works, steel structural works, as

well as associated supply of construction material and equipment for

various infrastructure projects.

Technical and Consultancy Service contracts, involving provision of

know-how, skills, personnel and training are categorised as

consultancy projects. Typical examples of services contracts are:

project implementation services, management contracts, supervision

of erection of plants, CAD / CAM solutions in software exports,

finance and accounting systems.

Supplies: Supply contracts involve primarily export of capital goods

and industrial manufactures. Typical examples of supply contracts

are: supply of stainless steel slabs and ferro-chrome manufacturing

equipment, diesel generators, pumps and compressors.

Exim Bank, under powers delegated vide the PEM, provides post-award

clearance for project export contracts valued upto USD 100 million. Project

export contracts valued above USD 100 million need to be provided post-

award clearance by the inter-institutional Working Group. The Working

Group is a single-window clearance mechanism, comprising Exim Bank as

the convener and nodal agency, RBI – Foreign Exchange Department and

Export Credit Guarantee Corporation of India Ltd. [ECGC]. In the case of

very large value projects, officials of Ministry of Finance, Ministry of

Commerce and Industry and Ministry of External Affairs, Government of

India, are invited to participate in the Working Group Meetings. In order to

obtain immediate clarifications for speedy clearance of proposals by the

Working Group, the exporters concerned and their bankers are also

associated with the meetings. With the same objective, participation of the

main sub-suppliers, sub-contractors or other associates and their bankers in

such meetings is also encouraged, particularly in respect of proposals for

high value contracts. Exim Bank also plays the role of a financier and

provides funded and non-funded support for project export contracts of

Indian Entities.

In addition to project exports, Exim Bank also extends fund-based and non-

fund-based facilities to deemed export contracts as defined in Foreign Trade

Policy of GOI, e.g.,

- secured under funding from Multilateral Funding Agencies like

the World Bank, Asian Development Bank, etc.;

- contracts secured under International Competitive Bidding;

- contracts under which payments are received in foreign

currency.

2) Exim Bank offers the following Export Credit facilities, which can be

availed of by Indian companies, commercial banks and overseas

entities.

1) For Indian Companies executing contracts overseas

a) Pre-shipment credit:-

Exim Bank's Pre-shipment Credit facility, in Indian Rupees and foreign

currency, provides access to finance at the manufacturing stage - enabling

exporters to purchase raw materials and other inputs.

Pre-shipment credits are usually extended by exporters’ commercial banks

for period up to 180 days. Exim Bank extends pre-shipment / post-shipment

credit either directly or in participation with commercial banks. In order to

offer one-stop banking products to export clients, the Bank has also been

offering short-term pre / post shipment credit either directly or through

exporter’s bankers. Exim Bank may consider extending pre-shipment credit

and post-shipment credit for periods exceeding 180 days, on case-to-case

basis and subject to the merits of the case.

b) Supplier's Credit:-

This facility enables Indian exporters to extend term credit to importers

(overseas) of eligible goods at the post-shipment stage.

Post-shipment Supplier’s Credit can be extended to Indian exporters upto the

extent of the deferred credit portion of the export contract, either in Rupees

or in Foreign currency. The period of deferred credit and moratorium will

generally depend on the nature of goods [List A and List B of Memorandum

PEM] or nature of projects, as per guidelines contained in the Memorandum

PEM of RBI.

2) For Project Exporters:-

a) Export Project Cash-Flow Deficit Financing Programme [EPCDF]

Indian project exporters (including those under Deemed Exports category)

incur expenditure in rupee or foreign currency while executing contracts i.e.

costs of mobilisation/acquisition of materials, personnel and equipment etc.

Exim Bank's facility helps them meet these expenses for

a) Project Export Contracts;

b) Contracts in India categorized as Deemed Exports in the Foreign

Trade Policy of India.

b) Capital Equipment Finance Programme (CEFP)

Capital Equipment Finance Programmer [CEFP] has been conceived to cater

to capital expenditure for procurement of capital equipment to be utilized

across multiple contracts. CEFP provides direct access to Exim Bank’s

finance for eligible Indian companies for procurement of indigenous and

imported capital equipment for executing overseas projects / deemed export

projects.

4) For Exporters of Consultancy and Technological Services

Exim Bank offers a special credit facility to Indian exporters of consultancy

and technology services, so that they can, in turn, extend term credit to

overseas importers.

5) Guarantee Facilities

Indian companies can avail of guarantee facilities of different types to

furnish requisite guarantees to facilitate execution of export contracts

(including deemed export contracts) and import transactions.

6) For Overseas Entities

a) Buyer's Credit

Overseas buyers can avail of Buyer's Credit from Exim Bank, for import of

eligible goods from India on deferred payment terms. As per Memorandum

PEM guidelines, RBI has authorised Exim Bank to extend overseas buyer’s

credits upto USD 20 mn for project exports without seeking approval of

RBI.

The facility enables exporters/contractors to expand abroad and into non-

traditional markets. It also enables exporters/contractors to be competitive

when bidding or negotiating for overseas jobs.

Benefits to Foreign Customers

a. Enables overseas buyers to obtain medium-and long-term financing

b. Competitive interest rate against host country's high cost of borrowing

b) Buyer’s Credit under NEIA

Buyer’s Credit – NEIA is a unique financing mechanism that provides a safe

mode of non-recourse financing option to Indian exporters and serves as an

effective market entry tool to traditional as well as new markets in

developing countries, which need deferred credit on medium or long-term

basis.

Under this facility, Exim Bank facilitates project exports from

India by way of extending credit to overseas sovereign governments and

government owned entities for import of Indian goods and services from

India on deferred credit terms. Exim Bank will obtain credit insurance cover

under NEIA through ECGC. NEIA is a trust set up by the Ministry of

Commerce and administered by Export Credit & Guarantee Corporation of

India (ECGC).Facility is available for project exports requiring medium or

long term deferred credit.

7) Line of Credit (LOC)

it is a financing mechanism through which Exim Bank extends support for

export of projects, equipment, goods and services from India. Exim Bank

extends LOCs on its own and also at the behest and with the support of

Government of India. Exim Bank extends Lines of Credit to:

a)  Foreign Governments or their nominated agencies such as central banks,

state owned commercial banks and para-statal organizations;

b) National or regional development banks;

c) Overseas financial institutions;

d) Commercial banks abroad;

e) Other suitable overseas entities.

The above mentioned recipients of LOCs act as intermediaries and on lend

to overseas buyers for import of Indian equipment, goods and services. LOC

is a financing mechanism that provides a safe mode of non-recourse

financing option to Indian exporters to enter new export markets or expand

business in existing export markets without any payment risk from the

overseas importers.

1. BROAD GUIDELINES AND PROCEDURE FOR GOVERNMENT

OF INDIA SUPPORTED LINES OF CREDIT

The Government of India (GOI), in 2003-04, formulated the Indian

Development Initiative (IDI), now known as Indian Development and

Economic Assistance Scheme [IDEAS] – with the objective of sharing

India’s development experience through capacity building and skills

transfer, trade, and infrastructure development, by extending concessional

Lines of Credit (LOCs) routed through Exim Bank, to developing partner

countries, towards creating socio-economic benefits in the partner country.

Recently, the Ministry of External Affairs (MEA) has set up the

Development Partnership Administration (DPA) Division to deal with

India’s development assistance programmes abroad, including LOCs routed

through Exim Bank. These LOCs are now increasingly being extended to

partner countries for large-scale and complex projects (project exports from

India). Bilateral or multilateral assistance, through lines of credit, typically

follows a sequence of standard procedures, viz.

a) Project identification and preparation,

b) Review and approval of the project proposal,

c) Offer of the loan, acceptance and execution of loan agreement,

d) Project implementation, monitoring and supervision, and

e) socio-economic impact assessment after project completion.

The lessons learned from the impact assessment / evaluation act as a

feedback to the preparation, review and implementation of future projects.

This process forms the 'project cycle.

2. BROAD GUIDELINES AND PROCEDURE EXIM BANK’S OWN

COMMERCIAL LINES OF CREDIT.

Exim Bank, since its inception, has been extending LOCs to various

countries to promote export of Indian projects, products and services. Under

the LOCs extended by Exim Bank to overseas financial institutions, foreign

governments, regional and national development banks and commercial

banks, Exim Bank finances all items eligible for being exported under the

'Foreign Trade Policy' of Government of India. The credit periods for these

LOCs are generally up to 7 years and the LOCs typically carry LIBOR-

linked interest rates.

LATEST TRANDS & PRESS RELEASE OF JUNE 2016

1. Exim Bank as a Financier of Exports

A) Projects, Products and Services Exports

The Bank provides a range of export credit services like finance for export

of projects and consultancy services, capital equipment finance, export

project cash-flow deficit finance and guarantees. The Bank is equipped to

offer a comprehensive financing package to Indian project exporters

including funded support and project related guarantee facilities.

B) Export Contracts

During FY 2014-15, 105 contracts amounting to ` 497.81 billion covering 40

countries were secured by 56 Indian exporters, as against 75 contracts worth

` 341.31 billion covering 35 countries, secured by 40 Indian exporters during

FY 2013-14. The contracts secured during the year comprised 43 turnkey

contracts valued at ` 236.44 billion, 24 construction contracts valued at `

233.02 billion, 11 supply contracts valued at ` 15.02 billion and 27 technical

consultancy & services contracts valued at ` 13.33 billion.

C) Export Credits and Guarantees

During the year, the Bank approved loans aggregating 257.34 billion by way

of supplier's credit, buyer's credit, and finance for Project Exports as against

148.78 billion during the previous year. Disbursements amounting to 151.82

billion were made during the year, as compared to` 176.87 billion during the

previous year. Guarantees sanctioned and issued during the year amounted

to ` 59.68 billion and ` 20.83 billion respectively, as against ` 40.64 billion

and ` 17.07 billion during the previous year. These guarantees pertain to

overseas projects in sectors such as power generation, transmission and

distribution, infrastructure development and export obligation guarantees.

D) Buyer’s Credit

Buyer’s Credit is a unique program of Exim Bank under which, the Bank

facilitates Indian exports by way of extending credit facility to overseas

buyers for financing their imports from India. Under Buyer’s Credit

programed, Exim Bank makes payment of eligible value to Indian exporters,

without recourse to them. Buyer’s Credit is a safe, non-recourse financing

option available to Indian exporters, especially to small and medium

enterprises, which motivates them to enter overseas markets. During 2014-

15, the Bank extended Buyer’s Credit facility aggregating ` 33.20 billion to

26 overseas companies. Disbursements under Buyer’s Credit programed

aggregated ` 26.57 billion for exports to countries that include Uganda,

United Kingdom, Zambia and Zimbabwe. The products exported under

Buyer’s Credit included transport vehicles and auto spare parts, engineering

goods, IT services, fruits and vegetables, rice, other agro-based products and

commodities, plain and studded gold / diamond jewelry, steel wires and wire

rods, fuel & furnace oil, tyros and yarn etc. Several exporters from small and

medium enterprises were beneficiaries under the Buyer’s Credit programed,

receiving non-recourse payment.

E) Lines of Credit :-

Exim Bank extends Lines of Credit (LOCs) to overseas financial

institutions, regional development banks, sovereign governments and other

entities overseas, to enable buyers in those countries to import

developmental and infrastructure projects, equipment’s, goods and services

from India, on deferred credit terms. Indian exporters can obtain payment of

eligible value from Exim Bank, without recourse to them, against

negotiation of shipping documents. During the year, the Bank extended 17

LOCs, aggregating US$ 1.67 billion, to support export of projects, goods

and services from India.

F) Building Export Competitiveness:-

The Bank operates a range of financing programmes aimed at enhancing the

export competitiveness of Indian companies. A variety of financing services

are offered to export-oriented units, importers and for overseas investment

by Indian companies. The financing programmes cater to the term loan

requirements of Indian exporters for financing their new projects, expansion,

modernization, purchase of equipment, R&D, overseas investments and also

the working capital requirements. During 2014-15, Exim Bank sanctioned

loans aggregating to ` 216.58 billion under programmes for enhancing

export competitiveness. Disbursements amounted to ` 197.91 billion under

these programmes.

Make in India:-

In line with the ‘Make in India’ campaign of the Government of India, Exim

Bank has been a catalyst in channelising FDI into the country in sectors that

are export oriented. The Bank recognizes the importance of FDI in tradable

sectors, which boosts exporting capacity by productivity improvements

through technology, learning and competition, thus improving the Current

Account Balance of the country. The Bank has facilitated many large

overseas companies to set up manufacturing facilities in India with the sole

objective of exporting back to the parent’s value chain overseas, thus

creating jobs in India. This is more pronounced in labour-intensive

industries due to the availability of skilled manpower at competitive costs in

India. For instance, a sample survey of 10 such FDI manufacturing projects

financed by Exim Bank with total assistance of 15.97 billion has been able

to facilitate FDI of ` 43.80 billion into the country and cumulative exports of

` 277.07 billion in the last five years.

Overseas Investment Finance:-

The Bank has a comprehensive programme covering equity finance, loans,

guarantees and advisory services, to support Indian outward investment.

During the year, 35 corporates were sanctioned funded and non-funded

assistance aggregating to ` 58.07 billion for part financing their overseas

investments in 11 countries. So far, Exim Bank has provided finance to 533

ventures set up by 430 companies in 91 countries. Overseas investments

supported during the year include acquisition of a veterinary products plant

in Turkey, setting up of a chilli manufacturing unit in China and acquisition

of an engineering unit in Germany, among others.

Finance for Imports:-

The Bank also selectively undertook finance towards imports under the Bulk

Import Finance Programme and Import Finance Programme. Sanctions and

disbursements amounted to 9 billion and ` 19.53 billion, respectively under

the Bulk Import Finance Programme. Under the Import Finance Programme,

companies were sanctioned term loans aggregating 30.31 billion and

disbursements aggregated `16.77 billion.

3) Exim Bank as a Facilitator of Exports

A) Rural Grassroots Business Initiatives

The Bank, through its grassroots initiatives, envisages supporting

globalization of enterprises based out of rural India. The programme seeks to

address the needs of relatively disadvantaged sections of society while

creating expanded opportunities for traditional crafts persons and artisans,

and rural entrepreneurs of the countr y. During the year, the Bank provided

support to a Maharashtra based social enterprise that promotes beekeeping to

increase agricultural productivity, enhance income and improve livelihoods

of marginal farmers in India. The intervention by the Bank is aimed at part

financing the working capital requirements of the organization, which

provides direct market access to over 3,000 small beekeepers across six

states of India. Financial support was provided to an Odisha based non

profitable Society which is into Dhokra craft, tribal jewellery, tribal painting

and tribal textiles. More than 2000 artisans belonging to the disadvantaged

sections of the society are associated with this organization. Intervention in

the form of lending support was also provided to Nilgiris, a Tamil Nadu

based social enterprise which works with nearly 2000 artisans, mostly from

the tribal communities, promoting agro-ecological products. The

organization provides a marketing platform for primary producers, forest

dwellers, weavers and craftsmen from marginalized and indigenous

communities. The Bank also continued its support to an artisan and farmer’s

cooperative society in Kumaon, Uttarakhand, which is into production of

naturally dyed silk and wool textiles and enhanced its support to a social

enterprise sourcing off-the-loom products from handlooms in Bhagalpur,

Bihar. Marketing Advisory Services The Bank plays a promotional role and

seeks to create and enhance export capabilities and international

competitiveness of Indian companies through its Marketing Advisory

Services. The Bank provides assistance in helping Indian firms in their

globalisation efforts by locating overseas distributor(s)/ buyer(s) / partner(s)

for their products and services. Exim Bank also assists in identification of

overseas opportunities for setting up plants or projects or for acquisition of

companies overseas. The Bank leverages its high international standing, in-

depth knowledge and understanding of the international markets and well

established institutional linkages, coupled with its physical presence, to

support Indian companies in their marketing initiatives on a success fee

basis.

B) Events/Exhibition

The Bank in partnership with Surajkund Mela Authority sponsored 5 stalls a

t the Surajkund Mela which was held i n Haryana during February 2015. The

internationally acclaimed event drew large number of buyers and helped the

artisans find new market opportunities. Artisans supported by the Bank

displayed crafts including Madhubani Paintings, Papier Mache & other

Kashmiri handicrafts & textiles, Jute Bags and Folders, Sanjhi Arts and

Rajasthani miniature paintings at the Mela and earned several accolades and

a ppreciation. The Bank supported booth space for Bidar Bidri Youth

Mandal and The Ants Craft Trust during the Kala Ghoda Arts Festival event

held in Mumbai during February 2015. The Festival served as a platform for

artisans of these organisations to showcase their Bidriware Artifacts and

Black Pottery products and obtained several new enquiries. The Bank also

offered assistance to Pochampally Handloom Park Ltd. by offering booth

space at the Home Expo India event in New Delhi during April 2014. The

event was organized by Export Promotion Council for Handicrafts. The

event provided access to a large number of buyers and helped Pochampally

Handloom Park find new business opportunities in both local and overseas

market. The Bank in collaboration with National Centre for Design &

Product Development and Central Cottage Industries Corporation of India

Ltd supported Pochampally Handloom Park and Anwar Ali Jute Crafts & Ba

gs to participate at an Exhibition-cum-Sales event in New Delhi during May

2014.

4) Exim Bank as a Promoter of Exports

A) Research and Analysis:-

Exim Bank’s Research & Analysis Group offers a range of research insights

on aspects of international economics, trade and investment through

qualitative and quantitative research techniques. The research work carried

out in the Group under the broad classification of regional, sectoral and

policy related studies, are published in the form of Occasional Papers,

Working Papers, Books, etc.

The some research studies undertaken by EXIM BANK are:

1. Outward Direct Investment from India: Trends, Objectives and Polic

Perspectives.

2. Indian Capital Goods Industry.

3. Research & Development in BRICS.

4. Indian Electronic Goods Industry: Neutralizing Trade Deficit with China.

5. The Indian Pharmaceutical Industry.

6. Trade Liberalization, Product Variety and Growth.

7. Bangladesh: A Study of India’s Trade and Investment Potential.

8. Potential for Enhancing India’s Trade with Australia.

B) Information and Advisory Services:-

The Bank provides a wide range of information, advisory and support

services, which complement its financing programmed. These services are

provided on a fee basis to Indian companies and overseas entities. The scope

of services includes market-related information, sector and feasibility

studies, technology supplier identification, partner search, investment

facilitation and development of joint ventures both in India and abroad.

The Bank was commissioned by the Commonwealth Secretariat,

London, to undertake a study on the Indian experience of Gender

Disaggregation of Access to Finance Data Initiative and the Priority Sector

Lending Programmed. The former case study presented an overview of the

policy framework developed by the Government of India for empowering

women with specific reference to their access to finance through directives,

Guidelines, and institutional framework.

C) Multilateral Funded Projects Overseas:-

The Bank provides a package of information and support services to Indian

companies to help improve their prospects for securing business in projects

funded by the World Bank, Asian Development Bank, African Development

Bank (AFDB) and European Bank for Reconstruction and Development.

Projects funded by such Multilateral Funding Agencies present attractive

business opportunities f or supplier s, contractors and consultants.

Recognizing the potential for increasing effective participation by Indian

firms in such multilateral funded projects, Exim Bank has been organizing

seminars in association with the Multilateral Agencies.

A RESENT FIGURS OF INDIA’S FOREIGN TRADE: (June, 2016):-

MERCHANDISE TRADE

EXPORTS & IMPORTS : (US $ Million) (PROVISIONAL)

EXPORTS (including re-exports) JUNE APRIL-JUNE

2015-16 22289.43 66690.90 2016-17 22572.30 65311.77 %Growth2016-17/ 2015-16 1.27 -2.07 IMPORTS 2015-16 33116.55 98916.56 2016-17 30688.54 84545.78 %Growth2016-17/ 2015-16 -7.33 -14.53 TRADE BALANCE

2015-16 -10827.12 -32225.66

2016-17 -8116.24 -19234.01

EXPORTS & IMPORTS : (Rs.Crore) (PROVISIONAL)

EXPORTS

(including re-exports)

JUNE APRIL – JUNE

2015-16 142341.88 423315.24

2016-17 151904.56 436960.98%Growth2016-17/ 2015-16 6.72 3.22 IMPORTS

2015-16 211484.61 627830.30 2016-17 206524.39 565754.29%Growth2016-17/ 2015-16 -2.35 -9.89 TRADE BALANCE 2015-16 -69142.73 -204515.06 2016-17 -54619.83 -128793.31

MERCHANDISE TRADE

A) EXPORTS (including re-exports):-

For the first time after a gap of 18 months, exports in June 2016 have

recorded a positive growth of 1.27%.

During June,2016 exports were valued at US$ 22572.30 million

(Rs.151904.56 crore) which was 1.27 per cent higher in Dollar terms (6.72

per cent higher in Rupee terms) than the level of US$ 22289.43 million (Rs.

142341.88 crore) during June,2015. Cumulative value of exports for the

period April-June 2016-17 was US$ 65311.77 million (Rs.436960.98 crore)

as against US$ 66690.90 million (Rs.423315.24 crore) registering a negative

growth of 2.07 per cent in Dollar terms and positive growth of 3.22 per cent

in Rupee terms over the same period last year.

Non-petroleum exports have recorded a positive growth of 3.06% in June

2016, higher than the 1.01% growth achieved in May 2016. During June

2016 Non-petroleum exports were valued at US$ 19997.33 million against

US$ 19403.89 million in June 2015, an increase of 3.06%. Non-petroleum

exports during April to June 2016 are valued at US$ 58706.57million as

compared to US$ 58622.45 million for the corresponding period in 2015, an

increase of 0.14 %.

The growth in exports have fallen for USA (-7.44%), Japan (-2.23%), China

(-1.79%) but European Union exhibited positive growth (4.33%) for April

2016 over the corresponding period of previous year as per latest WTO

statistics.

B) IMPORTS

Imports during June 2016 were valued at US$ 30688.54 million (Rs.

206524.39 crore) which was 7.33 per cent lower in Dollar terms and 2.35

per cent lower in Rupee terms over the level of imports valued at US$

33116.55 million (Rs. 211484.61 crore) in June,2015. Cumulative value of

imports for the period April-June 2016-17 was US$ 84545.78 million (Rs.

565754.29 crore) as against US$ 98916.56 million (Rs. 627830.30 crore)

registering a negative growth of 14.53 per cent in Dollar terms and 9.89 per

cent in Rupee terms over the same period last year.

C) CRUDE OIL AND NON-OIL IMPORTS:

Oil imports during June, 2016 were valued at US$ 7252.11 million which

was 16.42 per cent lower than oil imports valued at US$ 8676.38 million in

the corresponding period last year. Oil imports during April-June, 2016-17

were valued at US$ 18846.62 million which was 23.57 per cent lower than

the oil imports of US$ 24657.97 million in the corresponding period last

year. Non-oil imports during June, 2016 were estimated at US$ 23436.43

million which was 4.11 per cent lower than non-oil imports of US$

24440.17 million in June, 2015. Non-oil imports

during April-June 2016-17 were valued at US$ 65699.16 million which was

11.53 per cent lower than the level of such imports valued at US$ 74258.59

million in April-June, 2015-16.

SERVICES TRADE

EXPORT & IMPORTS (SERVICES): (US $ Million)

(PROVISIONAL) May 2016-17

EXPORTS (Receipts) 13460.00

IMPORTS (Payments) 7922.00

TRADE BALANCE 5538.00

EXPORTS & IMPORTS (SERVICES): (Rs. Crore)

(PROVISIONAL) May 2016-17

EXPORTS (Receipts) 90056.42

IMPORTS (Payments) 53003.49

TRADE BALANCE 37052.93

Source: RBI Press Release dated 15th July 2016

II. TRADE IN SERVICES (for May, 2016, as per the RBI Press Release

dated 15thJuly, 2016)

A) EXPORTS (Receipts)

Exports during May, 2016 were valued at US$ 13460 Million (Rs. 90056.42

Crore) registering a positive growth of 4.28 per cent in dollar terms as

compared to positive growth of 0.10 per cent during April 2016 (as per

RBI’s Press Release for the respective months).

B) IMPORTS (Payments)

Imports during May 2016 were valued at US$ 7922 Million (Rs. 53003.49

Crore) registering a positive growth of 10.29 per cent in dollar terms as

compared to negative growth of 9.13 per cent during April 2016 (as per

RBI’s Press Release for the respective months).

III.TRADE BALANCE

A) MERCHANDISE: The trade deficit for April-June, 2016-17 was

estimated at US$ 19234.01million which was lower than the deficit of US$

32225.66 million during April-June, 2015-16.

B) SERVICES: As per RBI’s Press Release dated 15th July 2016, the trade

balance in Services (i.e. net export of Services) for May, 2016 was estimated

at US$ 5538 million. The net export of services for April- May, 2016-17 was

estimated at US$ 11263 million which is higher than net export of services

of US$ 11244 million during April- May, 2015-16. (The data for April-May

2015-16 and 2016-17 has been derived by adding April-May month wise QE

data of RBI Press Release).

C) OVERALL TRADE BALANCE: Overall the trade balance has

improved. Taking merchandise and services together, overall trade deficit

for April- June 2016-17 is estimated at US$ 7971.01 million which is 62.01

percent lower in Dollar terms than the level of US$ 20981.66 million during

April-June 2015-16. (Services data pertains to April-May 2016 as May 2016

is the latest data available as per RBI’s Press Release dated 15th July 2016).