Handicrafts to get global boost

MUMBAI: Rural handicrafts are set to get to leg up on marketing abroad with a joint venture between Exim Bank with the Khadi and Village Industries Commission (KVIC) and a few NGOs being formed for the purpose.

The new entity will also address obstacles faced by rural artisans to market their ware in the global market. Exim will have 40% stake in the company with a proposed equity-base of Rs 5 crore will, KVIC is expected to contribute another 40%.

The balance 20% is expected from NGOs engaged in rural handicrafts, according to Exim Bank chairman and managing director, TC Venkatasubramanian. While Exim’s board has approved the investment, KVIC in the process of obtaining government approval for the project.

The proposed venture aims at contributing to capacity building of grassroots business enterprises and promote exports of products from rural enterprises. The bank will utilise its overseas offices and institutional linkages to help KVIC in identifying products with export potential, countries keen on importing such products an interested buyers abroad.

Exim has also extended lines of credit to overseas buying houses and department stores for importing a variety of products from India and has managed procurement of orders from Singapore, South Africa, Hungary and USA. Washington-based International Finance Corporation an arm of the World Bank has also put up an India stall at a display cum-ales centre at Washington DC, where agro and rural products from various developing countries are displayed.

In another initiative support global market of rural industries, Exim has entered into a cooperation arrangement with the confederation of NGOs of rural India (CNRI), which has member across the country. Exim assists CNRI members with capacity building, training and access to national and global markets.

Earlier, announcing the results, the bank recorded a 10.6% growth in net profit to Rs 299crore. Loan approvals rose 31% during the year to Rs 26,762 crore, while disbursals rose 47% to Rs 22,076 crore. The bank is seeking a government nod to increase its authorised capital base from Rs 1,000 crore to Rs 2,000 crore, Mr Venkatsubramanian said.