Graphically Speaking

Binge borrowing

Corporate India is borrowing foreign currency in leaps and bounds, and the pile is inching to half of country’s external debt

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Published 10 months ago on May 08, 2020 1 minute Read

When Don Corleone promises, he delivers. So does the RBI. But, one is a fictional character and the other is the regulator of the Indian banking system. When both delivered, one became a priceless contribution to global cinema and the other bumped up India’s outstanding external commercial borrowing (ECB) by $29 billion to $223.8 billion in December 2019, which alone constitutes 40% of India’s total external debt.

Banking analyst Hemindra Hazari mentions in his report ‘Unhedged Portion of ECBs: One More Threat to C