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

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