Surge in Overseas Borrowing Signals Strong Investor Confidence in India

In a remarkable show of faith in India's economic growth, manufacturing and finance companies secured approvals to raise a record $11 billion through external commercial borrowings (ECBs) in March 2025. This marks the highest monthly inflow in over five years, as per RBI data.

Breaking down the approvals, about $8.3 billion was via the automatic route, with nearly $2.7 billion through the approval route, underscoring the global confidence in India's market potential.

Key Players in the ECB Surge

Leading the pack, Yuzhan Technology (India), a Foxconn subsidiary, was approved for $220 million for working capital, highlighting the tech sector's vibrant demand. Heavyweights like JSW Steel and ONGC Videsh also secured significant amounts for refinancing, showcasing diverse sectoral participation.

Other notable approvals include Tata Semiconductor's $625 million for new projects and Nuclear Power Corporation of India's $511 million, pointing towards a broad-based economic expansion.

Fiscal Year Overview

For FY25, total ECB proposals soared to $61.8 billion, a substantial leap from $49 billion in FY24, with financial services companies accounting for nearly half of these approvals.

This surge in overseas borrowing not only reflects India's growing appeal as an investment destination but also sets a positive tone for its economic trajectory in the coming years.