Dear All,

Large ECBs for Power in April 2013

Indian firms have raised US$ 1.12 bn through external commercial borrowings (ECBs) in the month of April 2013 by automatic and approval route. The borrowings stood at US$1.12 bn in April 2013 as compared to US$ 2.73 bn in April 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$223 bn between FY2001 and FY2014 (till April 2013).

Gross ECB Inflows                                                                                                                                                (US$bn)

Source: PHD Research Bureau, compiled from RBI

* Data pertains to Apr 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 April 2013 is held by the power contributing to about 43% of the total, followed by import of capital goods at around 22% and new project at around 13%.

  Pattern showing ECBs during April 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