Tuesday 30 April 2013



Large ECBs for Overseas acquisitions in March 2013

ECBs inflows fell by around 11% during FY2013 at US$ 31.99 bn as compared with US$ 35.96 bn in FY2012

Indian firms have raised US$ 5.08 bn through external commercial borrowings (ECBs) in the month of March 2013 by automatic and approval route. The borrowings stood at US$5.08 bn in March 2013 as compared to US$ 3.83 bn in March 2012. ECBs fell by around (-) 11% as compared with the corresponding period last year, as borrowings declined to US$ 31.99 bn in FY2013 from US$ 35.96 bn in FY2012.

External commercial borrowings (ECBs) since January 2011                                                                                   (US$bn)
 Source: PHD Research Bureau, compiled from RBI
Note: ECB contains both automatic and approval routes

India has received gross ECB worth US$ 209.82 bn between FY2001 and FY2013. The ECBs inflow stands above US$ 25 bn during FY2008, FY2012 and FY2013. The average ECBs inflow stands at US$ 12.06 bn during FY2001-FY2010, while the average ECBs inflow stands at US$ 29.73 bn during FY2011-FY2013 period.

Gross ECB Inflows                                                                                                                                                (US$bn)
Source: PHD Research Bureau, compiled from RBI
Note: ECB contains both automatic and approval routes

closer look at the ECBs pattern reveals that the lion’s share in ECB during the month of March 2013 is held by the overseas acquisition contributing to about 19% of the total, followed by modernisation at around 17% and rupee expenditure Loc.CG at around 15%.

  Pattern showing ECBs during March 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

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