Export Marketing Fund

Eligible Companies: Manufacturing Private/ joint sector companies having definite export plan, resources and the capability to penetrate and retain presence in developed country markets.

Type of Assistance: Apart from advisory assistance for market entry and statutory approvals, Exim Bank provides grants for market entry and productivity improvement expenses, and term loans for purchase of equipment for modernization/capacity upgradation and software expenditure on product development, R&D and marketing investment. Grant finance is available in foreign currency up to 50% of the outlay on the eligible activities.

Eligible Activities: Grant finance is made available for desk/field research, minor product adaptation, overseas travel. product inspection/ certification, training (for export marketing), establishing overseas operations (including warehouse facility, recruitment of local staff and creating sales organization), travel of potential buyers to India, productivity improvement consultancy, ancillary development consultancy, supervisor training and design and product adaptation consultancy.

Loan finance is made available for machinery and equipment (for modernization/ capacity enhancement), tools, jigs and fixture, testing quality control equipment and software expenditure on product development/upgradation, R&D etc.

Terms and Conditions:

1. Maximum quantum of grant is 50% of eligible expenditure;
2. Limited to one export expansion plan per company, or per division in a divisionalised company.

Loan Finance:

1. Term loan is denominated in Indian Rupees;
2. Maximum amount for machinery/equipment is limited to rupee equivalent of about US$1,000,000;
3. In addition to '2' above, loan for software expense is also subject to similar maximum ceiling;
4. Minimum company contribution 20% of the cost export plan; Initial moratorium and repayment schedule depends upon projected cash flows.