Wednesday, September 4, 2013


Large ECBs for Import of Capital Goods in July 2013


Indian firms have raised US$3.71 bn through external commercial borrowings (ECBs) in the month of July 2013 and US$1.95 bn during June 2013 by automatic and approval route. The borrowings stood at US$3.71 bn in July 2013 as compared to US$ 1.07 bn in July 2012.

External commercial borrowings (ECBs) since April 2011                                                                                             (US$bn)
 Source: PHD Research Bureau, compiled from RBI
Note: ECB contains both automatic and approval routes

India has received gross ECBs worth around US$231 bn between FY2001 and FY2014 (till July 2013).

Gross ECB Inflows                                                                                                                                        (US$bn)
Source: PHD Research Bureau, compiled from RBI
* Data pertains till July 2013
Note: ECB contains both automatic and approval routes

closer look at the ECBs pattern reveals that the lion’s share in ECB during the month of July 2013 is held by import of capital goods contributing to about 62% of the total, followed by rupee expenditure Loc.CG at around 16% and overseas acquisition at around 6%.

  Pattern showing ECBs during July 2013                                                                                                           (% share in total)
  Source: PHD Research Bureau, compiled from RBI
 Note: ECB contains automatic& approval route both


Warm regards,

Dr. S P Sharma
Chief Economist

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