Exim Bank of India increases credit to exporters affected by American rates, Eyes Africa extension

Exim Bank of India offers shorter tenure credit for the working capital needs of exporters.

The Bank of India’s Export-Import (EXIM) increases credit support to exporters and helps them to diversify to newer markets, in particular Africa, after punitive American rates about the import of the South Asian nation, a senior official said.

Exim Bank of the State – which provides export financing and backs loans that provided by commercial lenders to buyers of Indian goods – has relieved the risk limits at least one fourth of the overseas banking partners, said Tarun Sharma, the deputy director of Exim Bank of India.

“Where there is a requirement, we work to see how we give improved limits to the exporters,” Sharma said in an interview. The bank has partnerships with more than 100 overseas banks in 54 countries under its trade tool.

Exim Bank also offers more shorter tenant credit and credit against future claims to tackle the immediate working capital needs of exporters, Sharma said.

The US, the largest export partner in India, imposed a rate of 50 percent for Indian exports on 27 August. Companies in sectors such as textiles, chemicals, gems and jewelry, and fishing, confronted with job losses and uncertain order flows, have hit to find new buyers in markets throughout Europe, Africa and Asia.

The government does not yet have to announce financial or credit support for affected exporters, but has instructed banks to alleviate credit access for the sector.

Exportors initially dealt with the tariff shock by loading shipments to American customers before the Deadline of Augustus. Sharma, however, said that in the longer term, strategies switch from export capacities to “non-traditional” markets such as Africa and Latin America.

Diversified in Africa

Exim Bank is in conversation with African banks to increase its presence in the region, which is aimed at supporting diversification efforts.

Although Exim Bank is currently financing government projects in more than 40 African countries, Sharma said that it is now shifting his focus on the continent to commercial financing and trade facilitation.

The lecturer is investigating credit lines from $ 100 million to $ 150 million for regional banks, or $ 25 million to $ 50 million for smaller local banks, and expands partnerships with large lenders in the region, including Afrexim Bank (African Export-Import Bank) and the Africa Finance Corporation.

Indian exporters, who are confronted with challenges of American rates, have demonstrated “greater susceptibility to dialogue and move forward to diversify to African markets” with an incremental opportunity chance of more than $ 31 billion, Sharma said.

Published on September 24, 2025