Understanding the Ubharte Sitaare Fund and its Sponsors

The question asks about the sponsors of the 'Ubharte Sitaare Fund' as of August 2021. This fund is an initiative aimed at supporting Indian companies with potential to grow and expand globally.

Let's look at the options provided and determine which entities sponsored this significant fund:

• Exim Bank and SIDBI
• IDBI and LIC
• HDFC
• ICICI bank

The 'Ubharte Sitaare Fund' was indeed launched to identify and finance Indian micro, small, and medium enterprises (MSMEs) that have export potential but are facing issues related to finance. Such a fund helps provide necessary capital and support for these businesses to scale up and become global players.

In August 2021, this fund was officially sponsored by two prominent financial institutions in India. These institutions play a crucial role in providing financial assistance and promoting various sectors of the Indian economy, including export-oriented units and MSMEs.

Based on information regarding the fund's launch and structure, the sponsors are the Export-Import Bank of India (Exim Bank) and the Small Industries Development Bank of India (SIDBI).

Exim Bank is the principal financial institution for coordinating the working of institutions engaged in financing exports and imports. SIDBI is the principal development financial institution for promoting, financing, and developing the micro, small, and medium enterprises (MSME) sector in India.

Their collaboration for the 'Ubharte Sitaare Fund' leverages their respective strengths in export finance and MSME development.

Therefore, the correct sponsors of the 'Ubharte Sitaare Fund' in August 2021 were Exim Bank and SIDBI.

Let's quickly review the other options to confirm they are not the correct sponsors for this specific fund initiative.

• IDBI and LIC: While both are significant financial entities, they were not the primary sponsors of the Ubharte Sitaare Fund.
• HDFC: HDFC group includes various financial institutions, but none were the sponsors of this particular fund.
• ICICI Bank: ICICI Bank is a leading private sector bank, but it did not sponsor the Ubharte Sitaare Fund.

The partnership between Exim Bank and SIDBI specifically targets export-oriented MSMEs through the Ubharte Sitaare Fund.

Revision Table: Ubharte Sitaare Fund Sponsors

Additional Information: Role of Financial Institutions in India

Understanding the roles of different financial institutions helps clarify their involvement in such funds:

• Exim Bank (Export-Import Bank of India): Focuses on providing financial assistance to exporters and importers and promoting India's international trade.
• SIDBI (Small Industries Development Bank of India): Aims to promote, finance, and develop the MSME sector, coordinating the functions of institutions engaged in similar activities.
• IDBI (Industrial Development Bank of India): Formerly a development financial institution, now primarily functions as a bank.
• LIC (Life Insurance Corporation of India): A state-owned insurance group and investment company.
• HDFC (Housing Development Finance Corporation): Primarily a housing finance company, with the HDFC Group involved in various financial services.
• ICICI Bank: A major private sector bank offering a wide range of banking and financial services.

The collaboration between Exim Bank and SIDBI for the Ubharte Sitaare Fund is a strategic move to bolster the export capabilities of Indian MSMEs, aligning with national goals of increasing exports and supporting small businesses.