India’s Export-Import (EXIM) Bank is expanding its credit support to exporters and facilitating their entry into new markets, particularly in Africa. This initiative follows the imposition of stringent US tariffs on imports from India, as noted by a senior official.

As a state-owned institution, EXIM Bank plays a pivotal role in export financing and supports loans provided by commercial banks to purchasers of Indian goods. Tarun Sharma, the deputy managing director at EXIM Bank, shared that the organization has adjusted risk limits for approximately a quarter of its international banking partners.

“We are actively exploring ways to enhance limits for exporters wherever there’s a need,” Sharma mentioned in an interview. The bank collaborates with over 100 overseas banks across 54 countries as part of its trade assistance program.

Additionally, EXIM Bank is introducing shorter-tenure credit facilities and provisions against future receivables to help exporters meet their immediate working capital requirements.

The United States, which is India’s primary export partner, imposed a 50% tariff on Indian exports starting August 27. Industries such as textiles, chemicals, jewelry, and fisheries are grappling with job losses and fluctuating order flows, prompting them to seek new buyers in Europe, Africa, and Asia.

Although the government has yet to announce financial support for the affected exporters, it has instructed banks to make credit access easier for the sector.

Initially, exporters responded to the tariff challenge by accelerating shipments to U.S. clients before the deadline. However, Sharma emphasized that long-term strategies will pivot towards establishing export capabilities in “non-traditional” markets like Africa and Latin America.

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Expanding into Africa

EXIM Bank is currently engaging in discussions with African banks to bolster its operations in the region, as part of its diversification strategies.

While the bank has historically financed government projects in over 40 African nations, Sharma pointed out that the focus is shifting towards commercial financing and trade facilitation.

The lender is considering establishing credit lines ranging from $100 million to $150 million for regional banks, as well as $25 million to $50 million for smaller local banks. They aim to broaden partnerships with key financial institutions in the region, including the African Export-Import Bank (Afrexim Bank) and the Africa Finance Corporation (AFC).

Responding to challenges posed by U.S. tariffs, Indian exporters have demonstrated a heightened willingness to explore opportunities in African markets, with potential additional export values exceeding $31 billion, according to Sharma.

Published on September 24, 2025