India Inc Eyes Global Markets as Foreign Currency Borrowing Hits Six-Year Peak in March

 India witnessed a sharp rise in external commercial borrowings (ECBs) in March, with private sector companies raising a record $11 billion—the highest in over six years—according to Reserve Bank of India data.

Of this total, $8.3 billion flowed through the automatic route, while $2.7 billion came via the approval route. This surge underscores a growing preference among Indian corporates to access international credit markets for affordable, long-term funding, aimed at refinancing existing debt, expanding capital, and supporting overseas investments.

Leading sectors benefiting from this inflow included steel, oil and gas, semiconductors, and financial services. Key approvals were focused on refinancing prior loans, meeting working capital needs, and financing strategic projects. The increase in approvals also signals a strategic push by companies to diversify their funding sources and secure favorable borrowing terms in foreign currencies.

For the full fiscal year, ECB approvals climbed to $61.8 billion, a notable increase from $49 billion in FY24. Financial services firms accounted for nearly half of this amount, reflecting heightened credit demand and the sector’s deepening integration with global capital markets.