Indian corporates tap cheap foreign funds, raise whooping Rs 1,35,000 cr through ECB route in last 8 months

New Delhi, 29 Dec (KNN) According to the data by Reserve Bank of India (RBI), the external commercial borrowings (ECBs) made by Indian companies in the first eight month of the present financial year has been over INR 1,35,000 crore.

This indicates a steady gain in the economic activity as Indian companies borrowing from overseas catches pace owing the availability of cheaper funds overseas.

Although in the month of May 2021, it was recorded at USD 700 million which was the lowest in two and half year due to the second wave of covid-19 pandemic.

It saw a gradual increase from July 2021, but is still lower than USD 30.69 billion.

The month of June-September saw many corporates borrowing from the overseas market for funds.

One of the major factors that influenced corporates to raise funds from these markets was the low interest rate.

External Commercial Borrowings (ECB) refers to the debt shouldered by an eligible entity in India for solely commercial purposes, that has been extended by external sources, i.e. from any recognized entity outside India. These borrowings are expected to conform to norms and conditions put forth by the RBI.