The foreign trade policy (FTP) also known as EXIM (export-import) policy is

regulated by the Foreign Trade Development and Regulation Act, 1992. The
main governing body in the matters concerning the EXIM policy is DGFT
(Directorate General of Foreign Trade).
EXIM policy is an important topic included under Economic Globalization in ESI
paper of RBI Grade B Mains. In this article, we will study important elements
that candidates must prepare under the EXIM Policy.

Objectives of Foreign Trade Development and

Regulation Act, 1992
As you already know that the EXIM policy is regulated by the Foreign Trade
Development and Regulation Act, 1992. The main objective of this act is to
provide the development and regulation of foreign trade by facilitating imports
into and augmenting exports from India. Foreign Trade Act has replaced the
earlier law known as the imports and Exports (Control) Act 1947.

Objectives of EXIM Policy of India

Now, let us look at the objectives of EXIM policy of India:
 To promote persistent growth in exports to acquire a share of at least 1%
of international merchandise trade
 To encourage stable economic expansion by offering access to
necessary capital goods, raw materials, intermediate products,
consumables, installations, and elements essential for providing services
and expanding production.
 To improve the technological potency and productivity of Indian
agriculture, companies, and services, thus enhancing their competitive
power while creating fresh employment possibilities, and to stimulate
the accomplishment of globally acknowledged norms of quality.
 To supply consumers with fine condition goods and services at globally
competitive rates while simultaneously generating a level playing range
for domestic production.

EXIM Bank of India | Management & Functions of EXIM

Bank of India
Effective January 1, 1982, the Exim Bank was established to take responsibility
of the business of global finance branch of the IDBI (Industrial Development
Bank of India) and to deliver monetary support to importers and exporters and
to serve as a chief fi nancial foundation for collaborating the functioning of
other organizations involved in the financing of imports and exports of
products and services.
The sanctioned wealth of Exim Bank is Rs. 200 crores and the paid-up asset is
Rs. 100 crores completely endorsed by the Central Government.

Organization and Management

The Export-Import Bank is administered by a Board comprising of a Chairman,
the Managing Director along with 17 Directors signifying distinct areas. They
are the Commerce Secretary, Secretary to Banking, Secretary to the Department
of Industrial Board, Finance Secretary, Secretary IDBI, Secretary RBI, Secretary
ECGC, 3 directors depicting additional scheduled commercial banks, 4
Directors elected from the export society, and three additional symbolizing
departments and ministries.

Functions of Exim Bank

The Exim bank performs the following crucial responsibilities:
 The bank offers immediate monetary help to exporters of the plant,
equipment, and corresponding services by means of medium-term credit.
 To guarantee the issue of stocks, bonds, shares, and debentures of any
organization involved in exports.
 The bank put forward rediscount of export bills for a duration no longer
than 90 days against short period usage export invoices depreciated by
commercial banks.
 It also provides foreign buyers a credit to overseas importers for import
of Indian industrial products and concerning services.
 To create and fund export-oriented enterprises.
 To accumulate and assemble the market and credit particulars about
foreign trade.
These are some of the important concepts in the EXIM policy that you must
read for the RBI Grade B Phase-2 exams. Now, with the reopening of the
lockdown and announcement of major examinations in October-November, it is
being speculated that RBI will soon release its notifi cation with a similar
timeline.
THence, candidates must not waste any more time and kickstart their RBI
Grade-B preparation to have an edge over their peers! Check out our range of
courses for RBI Grade B preparation here.  Get in touch with our course
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