Indian Firms' Overseas Debt Fundraising Hits 7-Year High
· Business · Business Standard
Indian companies raised $36.6 billion through overseas debt in the first ten months of 2023, marking a seven-year high. This figure represents a 2.5-fold increase compared to the $14.5 billion raised during the same period in 2022. The surge is attributed to a significant drop in global interest rates, which made overseas borrowing more attractive. Additionally, the depreciation of the Indian rupee against the US dollar contributed to the higher cost of domestic borrowing for Indian firms.
Why it matters
This trend indicates Indian companies are increasingly relying on foreign markets for capital, potentially exposing them to currency fluctuation risks. It also reflects the impact of global interest rate movements and the rupee's performance on corporate financing decisions in India.
Read the original report — Business Standard
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