Exim Bank of India (Export-Import Bank of India) has made a bold move aimed at fostering international trade and financial services. The bank has set its sights on Gujarat’s GIFT City with the establishment of its subsidiary Exim Finserve.
The Exim Bank itself made the above announcement on Tuesday, 8th of August 2023, by India’s Union Finance Minister, Nirmala Sitharaman, in the Union Budget 2023. With this, the Department of Financial Services secretary also added that establishing the subsidiary will improve access to finances for MSMEs.
Harsha Bangari, the Managing Director of Exim Bank, conveyed his belief in the competence of Exim Finserve to effectively utilize the harmonized and simplified factoring services framework for Micro, Small, and Medium Enterprises (MSME) exporters. This framework will enable MSMEs to efficiently access finance against their receivables, which will help boost their working capital and facilitate their growth.
The Managing Director's positive outlook on Exim Finserve's capabilities reflects his confidence in the company's ability to provide reliable and beneficial financial services to MSMEs.
The subsidiary will provide exporters with a powerpack combination of three important services: coverage of non-payment risk, management of accounts receivable and receivables financing.
The Exim Finserve is said to extend the trade finance ranges for Indian exporters. Keeping the export factor as their optimal focus, the financial institute would lead to improved cash flow and reduced payment risks for exporters, enabling them to explore new markets and seize growth opportunities.
GIFT City: A Global Financial Epicenter
Gujarat International Finance Tec-City, or GIFT City, is India's first International Financial Services Centre (IFSC) located in Gandhinagar, Gujarat. Conceived as a hub for international finance and trade, GIFT City offers a conducive ecosystem for a wide range of financial services, including banking, insurance, asset management, and capital markets. Its well-defined regulatory framework, tax incentives, and brilliant infrastructure have attracted both domestic and international financial institutions, making it a prime location for Exim Bank's ambitious endeavor.
Exim Finserve: Unleashing the Potential
The establishment of Exim Finserve within GIFT City holds immense promise for multiple stakeholders, including businesses, investors, and the Indian economy as a whole.
1. Enhanced International Trade
Exim Finserve, a subsidiary of the Export-Import Bank of India, offers a comprehensive range of services to facilitate trade finance, including credit insurance and guarantees. These services support businesses engaging in cross-border trade, promoting and enhancing India's exports and imports.
With a commitment to providing seamless and efficient solutions, Exim Finserve is a trusted partner for businesses seeking to expand their reach in the global marketplace.
2. Access to Global Markets
The prestigious IFSC status of GIFT City has empowered Exim Finserve to raise funds with utmost efficiency, thereby enabling the diversification of funding sources. This has further facilitated the provision of innovative financial solutions to Indian businesses that are seeking to expand their operations globally.
3. Promotion and Innovation
Exim Finserve and other distinguished financial institutions are strategically located in GIFT City. This favorable positioning creates an environment that fosters collaboration and innovation, which drives the development of sophisticated financial services and products customized to meet the unique requirements of the global trade community.
The confluence of expertise and resources in this hub allows Exim Finserve to deliver cutting-edge solutions that optimize trade operations and enhance the competitiveness of businesses in the global marketplace.
4. Job Creation and Skill Development
Establishing Exim Finserve within GIFT City also catalyzes job generation, attracting a pool of skilled professionals in finance, trade, risk management, and allied domains. The development augments the demand for office for sale within the GIFT City enclave, subsequently benefiting real estate consultants by creating opportunities for property transactions and investments.
This dual impact contributes to economic growth and stimulates skill enhancement within the region, positioning GIFT City as a thriving ecosystem for career development and real estate ventures.
5. Strengthening India’s Global Position
Establishing Exim Finserve in GIFT City is a significant step towards India's ambition of emerging as a dominant force in the financial world. The significant move enhances India's position in the global financial and trade landscape and reinforces its commitment to fostering economic growth and development.
With Exim Finserve's presence, GIFT City is poised to attract more investments, create job opportunities, and boost the country's overall economic stability.
Final Words
Exim Bank's decision to establish Exim Finserve within GIFT City is a testament to India's commitment to enhancing its role in the global trade and financial sectors. This strategic move opens new avenues for international trade facilitation and positions GIFT City as a hub for financial innovation and collaboration.
As Exim Finserve embarks on its journey within GIFT City, it holds the potential to reshape the dynamics of international trade, contribute to economic growth, and strengthen India's foothold in the global economy.
Once again, the establishment of such big institutes has proved why it is worth investing in the real estate of GIFT City. Contact RES Management and find the perfect match for your dream office in Ahmedabad's primest location.
