Mumbai: The Export-Import Bank of India (Exim Bank) is planning to set up a new fund of USD 500 million (Rs 2,500 crore), which will provide MSMEs with long- term foreign currency loans, a top official said on Thursday.
'Technology and Innovation Enhancement and Infrastructure Development Fund' will support exports by Micro, Small and Medium Enterprises (MSMEs), he said.
"We will set up this fund with an initial amount of USD 500 million over the next five years to support MSMEs in getting foreign currency loans, which will help them in exports," Exim Bank Chairman and Managing Director T C A Ranganathan told reporters here.
He said the main purpose of this fund is to reach out to a large number of MSMEs to build capacities in the area of skill development, design and packaging, among others.
The Government-owned financial institution will also soon launch a new programme to finance export-oriented creative industries, Ranganathan said.
"Many creative industries like animation, gaming software, content development in movies, media, and education among others have a lot of export potential. We want to support these industries for increasing exports from India."
According to the bank, India's share in export of creative goods was USD 13.8 billion as against China's USD 97.8 billion.
Similarly, the bank is encouraging cluster approach to make export more competitive. The CMD of Exim Bank said the bank has started giving partial guarantee to Indian corporates for raising overseas loan in that country's currency.
"We want to promote overseas loans in that domestic currency. For example, a Indian corporate house should be able to raise money in the currency of the host country to protect it from currency fluctuation," he said adding, this will make them self-dependent to enter overseas market and raise money.
First Published: Thursday, April 26, 2012, 19:18