India Inc courts distant shores as foreign currency borrowing swells to over six-year high in March

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

Of the total, $8.3 billion was routed through the automatic channel, while $2.7 billion came via the approval route. The jump in ECBs highlights a growing trend among Indian corporates to tap into international credit markets for cost-effective, long-term financing — particularly to support refinancing, capital expansion, and overseas investments.

Major recipients included companies from sectors like steel, oil and gas, semiconductors, and financial services. Key approvals were directed toward refinancing earlier borrowings, working capital requirements, and strategic project financing. The rise in approvals also indicated a deliberate effort by companies to diversify funding sources, and lock in favourable borrowing terms in foreign currencies.

For the full year, ECB approvals rose to $61.8 billion, a significant jump from $49 billion seen in FY24. Financial services companies accounted for nearly half of this total, reflecting rising credit demand and the sector’s growing integration with global capital flows.