India’s Businesses Tap $3.3 Billion in Overseas Loans Amid Steady Global Funding Access in August 2025, Led by Energy and Finance
SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Institutions: Reserve Bank of India | Ministry of Finance
The Reserve Bank of India (RBI) reported that India’s corporates mobilised USD 3.27 billion through External Commercial Borrowings (ECBs) in August 2025 under the automatic and approval routes combined. The month’s inflows were led by energy, finance, and manufacturing borrowers, signalling continued global credit access amid tighter external conditions.
Key participants included:
HPCL–Mittal Energy Ltd. (USD 300 million) for refinancing earlier ECBs,
InterGlobe Aviation Ltd. (USD 313 million total) for import of capital goods,
Muthoot Finance Ltd. (USD 60 million) and REC Ltd. (USD 45 million) for on-lending, and
multiple medium-sized manufacturing and technology firms—Engie Energy India, JK Tyre, Universal Music India, Vena Energy Solar, and others—raising funds for modernisation, working capital, and new projects.
RBI data show that all USD 3.27 billion in foreign borrowings during August were raised through the automatic route — meaning companies didn’t need special RBI approval. This reflects a steady regulatory environment and routine use of the standard permission process. Most loans carry a 5-to-10-year maturity, and the main lenders were foreign parent companies or business partners.
The steady inflow of overseas loans signals global confidence in India’s credit strength. But much of the money went toward refinancing old debt or on-lending, rather than funding new investment. Policymakers now face a balancing act: keeping India open to foreign funding while managing debt risks and currency exposure. Encouraging green and long-term infrastructure-linked borrowings, and ensuring firms hedge against exchange-rate swings, will be essential. Coordination between the RBI and Finance Ministry will help make sure that external borrowing adds to India’s capital base instead of simply replacing domestic finance.
What are ECBs? → External Commercial Borrowings are loans availed by Indian companies from non-resident lenders—such as foreign banks, multilateral institutions, or parent firms—to finance capital expenditure, refinancing, or working capital. ECBs offer diversified funding but expose borrowers to foreign-exchange and interest-rate risks.
Follow the full update here: RBI Press Release PR 61424 | ECB Dataset (Aug 2025