AGREEMENTS FOR EXTERNAL commercial borrowings (ECBs) signed by Corporate India rose to $29.8 billion during the April-October period this fiscal, compared with $12.4 billion during the year-ago period, data from the Reserve Bank of India's December bulletin show. That was a jump of over 140%.
Disbursements or inflows, too, rose in a similar fashion during the period - these were $21.8 billion in the first 10 months of the current financial year, up 77% on year (see chart).
The unprecedented jump in ECBS indicates a new private capex cycle gaining momentum and is also in sync with relatively higher levels of capacity utilisation in a section of the Indian industry.
The easing of ECB rules by RBI in June last year also prompted many Indian companies to tap the overseas market for capital.
A section of Corporate India apparently finds ECB attractive, even after taking into account the cost of hedging against exchange rate volatility. Many companies are using a combination of domestic bank funds, the local bond markets, and ECBS of certain tenures to boost their capex.
Bu hikaye Financial Express Mumbai dergisinin December 21, 2023 sayısından alınmıştır.
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Bu hikaye Financial Express Mumbai dergisinin December 21, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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