A study by industry body Assocham revealed that Indian firms' overseas borrowings dipped about by 49% to $17.02 billion against $33.33 billion in the year ago, reported the PTI.
The study said that External Commercial Borrowings or ECB of Indian multinationals like Jindal Group, Kirloskar Group, Reliance Industries, Anil Ambani controlled ADAG and Tata Group among others decreased significantly by a range of 18% to 94% in 2008 over 2007. The number of companies borrowing funds through ECB also declined considerably to 414 firms in 2008 compared to 756 firms in the previous year.
Assocham Secretary General D S Rawat reportedly said that the Indian businessmen moderated their major activities due to the financial crisis, resulting in lesser demand for overseas borrowings in the year.
The overseas borrowings of Jindal group plunged by 94.82% followed by Yash Birla Group by 89.80%, Reliance Industries by 83.65% and Tata Group by 71.27% in 2008. Kirloskar Group raised $5.50 million via ECB in 2008 compared to $57.70 million in the previous year.
The study of the industry body based on Reserve Bank of India data revealed that JK Group's ECB decreased 48.79% and ADAG's ECB dropped 45.82%. The Essar Group's overseas borrowings declined 30.81% and Aditya Birla Group's ECB fell 18.12% in 2008.
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