Module: | MODULE A: INTERNATIONAL BANKING
Q173: Consider the following statements regarding the developmental initiatives of the Export-Import Bank of India:
1. The Ubharte Sitaare Programme is a joint initiative by the Export-Import Bank and the Small Industries Development Bank of India aimed at supporting Indian companies with high export potential.
2. The Grassroots Initiatives and Development program provides financial and advisory support to traditional artisans and enterprises at the grassroots level.
3. The statutory framework of the Bank prohibits it from providing direct financial assistance to Micro, Small, and Medium Enterprises.
Which of the statements given above is or are correct?
2. The Grassroots Initiatives and Development program provides financial and advisory support to traditional artisans and enterprises at the grassroots level.
3. The statutory framework of the Bank prohibits it from providing direct financial assistance to Micro, Small, and Medium Enterprises.
Which of the statements given above is or are correct?
✅ Correct Answer: A
🎯 Quick Answer:
Option A is correct because only statements 1 and 2 are accurate.Structural Breakdown: The Ubharte Sitaare Programme identifies underperforming but high-potential companies, providing them with structured debt and equity support.
The Grassroots Initiatives and Development program focuses on unorganized sectors, such as rural artisans, helping them reach export readiness.
Statement 3 is false because Micro, Small, and Medium Enterprises form a critical target segment for the Bank's Trade Assistance Program and other capability creation loans.
Historical Context: These programs were launched to diversify India's export basket, which traditionally relied on a few large corporate players, by bringing hidden champions from the smaller business sector into global value chains.
Causal Reasoning: The underlying causal objective of these programs is to resolve the credit constraints faced by smaller innovators.
By filling this funding gap, the Bank catalyzes the transition of local manufacturers into global exporters, driving inclusive economic growth.