MUMBAI: In a strong signal of rising investment in India’s private sector, manufacturing and finance companies received approval to raise a record $11 billion through external commercial borrowings (ECBs) in March 2025. This marks the highest monthly ECB inflow in more than five years, according to data released by RBI.Of the total amount, about $8.3 billion was approved through the automatic route, while nearly $2.7 billion was approved through the approval route. The surge in ECBs highlights the growing confidence in India’s economic prospects and its ability to attract foreign capital.Several prominent companies were among the top recipients of ECB approvals in March. Yuzhan Technology (India), a subsidiary of Taiwan’s Foxconn Group, received approval to raise $220 million for working capital needs. Established in late 2023, Yuzhan focuses on the manufacturing of computer, electronic, and optical products.

What drives external commerical borrowing

JSW Steel received approval to raise $900 million to refinance an earlier ECB, while ONGC Videsh and MRPL each received approval to raise $450 million and $500 million, respectively, for similar refinancing purposes. Power Finance Corporation received approval to raise $250 million for onlending, and IndianOil received approval to raise $400 million for refinancing an earlier ECB.Other companies that received approval to borrow included Tata Semiconductor, which secured approval to raise $625 million for a new project, and the Nuclear Power Corporation of India, which received approval for $511 million. JSW Neo received approval to raise $675 million for investment in an overseas joint venture, while Hero Fincorp and Nissan Renault Financial Services received approval for $250 million and $233 million, respectively, for onlending.For the full fiscal year, total ECB proposals amounted to $61.8 billion, a significant increase from the $49 billion raised in FY24. Nearly half of the approvals were for ECBs by financial services companies.The top 10 recipients of ECB approvals in FY25 include major companies such as Reliance Industries, Power Finance Corporation, and JSW Steel. Reliance Industries, for instance, received approval to raise two loans: nearly $3 billion for refinancing earlier ECBs, and another $1 billion for the local sourcing of capital goods. Both loans have maturities ranging from 5 to 12 years. Others include ONGC Videsh, which received approval for $800 million, and companies like Muthoot Finance, Shriram Finance, IIFL Finance, and Tata Capital, which were approved for $750 million each for onlending purposes.