India Inc. foreign borrowings drop 47% |
Latest data released by the Reserve Bank of India shows positive signs for India Inc. in an otherwise bleak economic situation resulting from COVID-19. Corporate India`s foreign borrowings fell by over 47% in the month of August 2020 to $1.75 billion. Domestic companies borrowed a total of $3.32 billion from overseas markets in August 2019, by way of external commercial borrowings known as ECBs. As per the RBI data released 5th October, overseas borrowings sources August 2020 included $1.61 billion in external commercial borrowings, while the rest of $145.74 million was raised by issuing Rupee-denominated Bonds or Masala Bonds. Splitting the data in the ECB category, it said a total of $1.57 billion was raised by various companies through the automatic route, while the rest $35.93 million came in through the approval route. The major borrowers in the automatic route of ECB included Reliance Sibur Elastomers, a manufacturer of chemicals and chemical products, which raised USD 339.42 million for the refinancing of an earlier ECB. Earlier in June 2020, India Inc. borrowings from foreign markets fell by over 81 percent to $ 1.02 billion while in April 2020 it plunged by 68.5 percent to $ 996.08 million.
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