Foreign currency borrowing by Indian corporates dropped sharply in March, falling 51% to $5.43 billion from $11.04 billion a year earlier. RBI data points to higher interest rates, a weakening rupee, and especially rising hedging costs that made overseas loans less attractive. Even FY26 figures reflect the slowdown, with ECBs and FCCBs down 30% to $42.87 billion. Instead of borrowing at higher costs, many firms allowed annual limits to lapse.
Indian companies and lenders cut foreign borrowing filings sharply in March, with ECB intentions falling to USD 5.43 billion. RBI data points to global financial market uncertainty behind the slowdown. While the figure is down from last year’s level, it is still higher than February’s filings, even as major firms moved ahead with new projects and loan refinancing.
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