ECBs stand at US$2.18bn during Nov 2013

 

ECBs stand at US$ 2.18bn during Nov 2013

 

Indian firms have raised US$ 2.18 bn through external commercial borrowings (ECBs) in the month of Nov 2013 and US$1.93 bn during Oct 2013 by automatic and approval route. The borrowings stood at US$ 2.18 bn in Nov 2013 as compared to US$ 1.34 bn in Nov 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$229 bn between FY2001 and FY2014 (till Nov 2013).

 

Gross ECB Inflows                                                                                                                                        (US$bn)

Source: PHD Research Bureau, compiled from RBI

* Data pertains till Nov 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 Nov 2013 is held by working capital contributing to about 23% of the total, followed by import of capital goods at about 19% and railways at about 18%.

 

  Pattern showing ECBs during Nov 2013                                                                                                           (% share in total)

  Source: PHD Research Bureau, compiled from RBI, Note: ECB contains automatic& approval route both

*Others with share of 0.004% include the external commercial borrowings by Internormen Filters Private Limited, however, the purposes is not mentioned in the release.

 

 

Warm regards,

 

Dr. S P Sharma

Chief Economist