Export Finance
EXPORT FINANCE
SUBMITTED TO: -
UNIVERSITY OF MUMBAI OCTOBER 2006
Project Guide: Prof. Mr. Umesh
PREFACE
In the light of growing need & importance of exports for our country it is of utmost importance that everyone should have an insight in the field of exports.
In the course of last decade, the export scenario in India has undergone a tremendous change. The liberalization initiated by the government, the keen competition in the market place & the rapid increase in the export of services have all combined to change the picture completely
This project will be covering various aspects of export finance. Areas covered in this project are related to “concept and types of export finance, financial institutions” etc.
I hope that this project would provide one, some essential information that will be useful to in future.
TABLE OF CONTENTS
Chapter. no Particulars Page No.
1 Introduction of Exports 01
2 Export Finance
2.1 Introduction
2.2 Concept
2.3 Objectives
2.4 Appraisal 02 - 04
3 Types of Export finance
3.1 Pre-Shipment
3.2 Post-Shipment 05 – 16
4 Letter of Credit – One of the most common method of payment in export finance 17 - 21
5 Some important Concept in Export Finance
5.1 Forfeiting
5.2 Factoring
5.3 Supplier’s Credit for Deferred Payment exports 22 – 28
6 Major Financial and other Institutions
6.1 Export Import Bank of India (EXIM Bank)
6.2 Export Credit Guarantee Control (ECGC)
6.3 Reserve Bank of India (RBI) 29 – 56
7 Market Development Assistance (MDA) 57 – 58
8 High Court Ruling: Export Losses are not entitled to Tax Concessions 59
9 Conclusion 60 – 61
10 Bibliography 62
EXECUTIVE SUMMARY
FINANCE IS THE LIFE AND BLOOD OF ANY BUSINESS. Success or failure of any export order mainly depends upon the finance available to execute the order. Nowadays export finance is gaining great significance in the field of international finance.
Many Nationalized as well as Private
SUBMITTED TO: -
UNIVERSITY OF MUMBAI OCTOBER 2006
Project Guide: Prof. Mr. Umesh
PREFACE
In the light of growing need & importance of exports for our country it is of utmost importance that everyone should have an insight in the field of exports.
In the course of last decade, the export scenario in India has undergone a tremendous change. The liberalization initiated by the government, the keen competition in the market place & the rapid increase in the export of services have all combined to change the picture completely
This project will be covering various aspects of export finance. Areas covered in this project are related to “concept and types of export finance, financial institutions” etc.
I hope that this project would provide one, some essential information that will be useful to in future.
TABLE OF CONTENTS
Chapter. no Particulars Page No.
1 Introduction of Exports 01
2 Export Finance
2.1 Introduction
2.2 Concept
2.3 Objectives
2.4 Appraisal 02 - 04
3 Types of Export finance
3.1 Pre-Shipment
3.2 Post-Shipment 05 – 16
4 Letter of Credit – One of the most common method of payment in export finance 17 - 21
5 Some important Concept in Export Finance
5.1 Forfeiting
5.2 Factoring
5.3 Supplier’s Credit for Deferred Payment exports 22 – 28
6 Major Financial and other Institutions
6.1 Export Import Bank of India (EXIM Bank)
6.2 Export Credit Guarantee Control (ECGC)
6.3 Reserve Bank of India (RBI) 29 – 56
7 Market Development Assistance (MDA) 57 – 58
8 High Court Ruling: Export Losses are not entitled to Tax Concessions 59
9 Conclusion 60 – 61
10 Bibliography 62
EXECUTIVE SUMMARY
FINANCE IS THE LIFE AND BLOOD OF ANY BUSINESS. Success or failure of any export order mainly depends upon the finance available to execute the order. Nowadays export finance is gaining great significance in the field of international finance.
Many Nationalized as well as Private