Archive · 23 Jul 2025
ECB Inflows Rise Significantly, New Registrations Contract
In the first two months, the amount of money coming into India from foreign loans increased significantly, about 159%, reaching $4.4 billion.
However, the number of new loan registrations decreased by 31% to $5.7 billion during this period.
Almost half of the total loans were used for investments like building things.
The overall amount of money borrowed from abroad also jumped up, more than five times, to $18.7 billion this year.
This is because it became cheaper to borrow from other countries, and companies, especially those not traditional banks, started borrowing more after new rules were set in 2023.
Net inflows of external commercial borrowings (ECBs) increased by 159% to $4.4 billion in the first two months of the fiscal year.
New registrations for ECBs decreased by 31% to $5.7 billion during the same period.
Nearly 48% of total registered ECBs were earmarked for capital expenditure.
Net ECBs rose over fivefold to $18.7 billion in FY25 compared to $3.6 billion the previous year.
Increased appetite for ECBs resulted from lower costs of foreign funds, and increased borrowing by non-banking financial companies after revised capital norms.
- Who
- External commercial borrowers and lenders.
- What
- Net inflows of external commercial borrowings (ECBs) increased significantly, while new registrations decreased.
- When
- The first two months of the current financial year (FY25) and the same period last year.
- Where
- India
- Why
- The appetite for overseas loans was caused by a decline in costs of foreign funds.
- Net ECB Inflows (2 months FY25)
- $4.4 billion
- ECB Growth (2 months)
- 159%
- New ECB Registrations (2 months FY25)
- $5.7 billion
- New Registration Decline (2 months)
- 31%
- ECB for Capital Expenditure
- 48%
- Net ECBs in FY25
- $18.7 billion
- Net ECBs a year ago
- $3.6 billion