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India's total External Commercial Borrowings (ECB) stood at USD 44.36 billion in December 2025, as per the data released by the Reserve Bank of India (RBI), reflecting sustained overseas funding by Indian companies for expansion, capacity creation and balance-sheet support.
A review of the data shows that ECB funds during the month were primarily utilised for import of capital goods, new project execution, modernisation of facilities, and on-lending by financial institutions. Manufacturing, financial services, infrastructure and transportation sectors accounted for a significant share of the borrowings, underlining continued investment activity across the economy. External Commercial Borrowings refer to loans raised by Indian entities from non-resident lenders in foreign currency or rupee-denominated bonds. These borrowings are permitted under the Reserve Bank of India's automatic or approval routes and are typically used for capital expenditure, new projects, modernisation, refinancing and working capital needs. The data reflected sizeable overseas borrowings by Air India and IndiGo that underscore continued capacity expansion and fleet modernisation in India's aviation sector, even as airlines prepare for rising passenger demand and international traffic growth. With long-tenure ECBs largely tied to aircraft imports, the sector remains one of the key drivers of foreign currency borrowings in the country. As per the RBI data, Air India Limited emerged as one of the largest individual borrowers during the month, raising a cumulative USD 2.75 billion through multiple ECB tranches. The airline raised USD 1.55 billion and USD 1.20 billion, both with a maturity of 12 years, from leasing companies. The entire borrowing was earmarked for the import of capital goods, indicating aircraft acquisition and fleet expansion as part of the Tata Group-owned carrier's ongoing transformation and modernisation programme. InterGlobe Aviation Limited, which operates IndiGo, also featured prominently among ECB borrowers. The airline raised a total of USD 463.7 million across four separate borrowings, with maturities ranging between 10 and 12 years. All the ECB tranches were utilised for the import of capital goods and were sourced from leasing companies, aligning with IndiGo's strategy of funding aircraft induction through long-term offshore financing. (ANI)
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