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