The Export-Import Bank of India (EXIM Bank) is set to take over the administration of India’s export subsidy scheme from the Reserve Bank of India (RBI), marking a shift in the government’s approach to managing export support.
Under the new arrangement, EXIM Bank will handle the implementation of the subsidy programme, while the RBI will no longer serve as the implementing agency. The move is aimed at streamlining the delivery of export incentives and placing their administration with an institution focused specifically on international trade and export finance.
EXIM Bank plays a key role in supporting Indian exporters through trade finance, credit facilities, guarantees and overseas project financing. Its expanded role in administering export subsidies is expected to strengthen coordination between export financing and government support measures.
The change comes as India continues to focus on improving the competitiveness of its exporters amid challenging global trade conditions. Exporters are facing pressures from fluctuating demand, higher logistics costs, tariff changes and increasing competition in international markets.
By assigning the implementation role to EXIM Bank, the government is expected to improve the operational management of export subsidies and make support mechanisms more closely aligned with exporters’ financing requirements.
The move is also significant as India seeks to expand its presence in global markets and support businesses in diversifying their export destinations. A more specialised implementation mechanism could help ensure that eligible exporters receive government support more efficiently.
The transition from the RBI to EXIM Bank therefore represents an institutional change in India’s export-support framework, with the bank expected to play a larger role in facilitating and administering measures designed to strengthen the country’s export sector.
