Foreign borrowing by Indian companies declines in September

The process of raising funds from abroad by Indian companies through External Commercial Borrowings (ECB), Foreign Currency Convertible Bonds (FCCB), and Rupee Denominated Bonds (RDB) saw a decline during September 2026. According to a report by Business Standard, there has been a decrease in the foreign borrowing plans of Indian companies, with the figure standing at $7.05 billion in September. These figures are lower compared to the $8.13 billion recorded in August.

As per data released by the Reserve Bank of India (RBI), details regarding ECB, FCCB, and RDB under General Permission and Special Permission for September 2026 have been made public. This data includes funds raised through External Commercial Borrowings and other types of foreign bonds. This press release was issued by Ajit Prasad, Deputy General Manager (Communications) of the RBI.

These September figures also include fundraising plans by some large companies. According to the Business Standard report, Vodafone Idea (Vi) plans to raise $1.5 billion. Additionally, NaBFID plans to raise $1 billion. Despite these large figures, a decline in the total foreign borrowing figure was noted compared to August.

Various types of instruments are used in this process of raising money from foreign markets by Indian companies. Among these, External Commercial Borrowings (ECB) are primary, which allow companies to take loans in foreign currency. Along with this, Foreign Currency Convertible Bonds (FCCB) and Rupee Denominated Bonds (RDB) are also important instruments used by companies according to their requirements. These September figures reflect the accumulation of funds through all these instruments.

The information released by the Reserve Bank of India provides an insight into the capacity and requirements of the country's corporate companies to raise funds from foreign markets. The decline from $8.13 billion in August to $7.05 billion in September indicates a shift in market trends. This data includes borrowing plans under both General Permission and Special Permission.

The Reserve Bank of India (RBI) plays the role of India's central bank. It is responsible for maintaining the country's financial stability and regulates the financial system. The RBI has determined the rules and permissions for various types of foreign borrowings and bonds, through which Indian companies can raise funds from global markets.