Mumbai Indian companies have announced investments worth Rs 32 lakh crore in the period from April to December of the current financial year. This is 39 percent more than the figure of Rs 23 lakh crore for the same period last year. The report said there is work-in-progress worth Rs 13.63 lakh crore till March 2024, which shows that the coming years will see rapid growth.
The report noted that government investment had reached 4.1 percent of GDP in FY23, the highest since FY12. At the same time, private sector investment has been 11.9 percent of GDP and this is the highest after FY 16. In the preliminary data of FY24 coming at the end of February this year, private sector investment may be 12.5 percent of the GDP. External Commercial Borrowings (ECB) are the main source of funding for Indian companies. ECBs worth $190.4 billion were outstanding as of September 2024. There has been an increase in this compared to the previous quarter. The share of non-rupee and non-FDI components in this was $155 billion. It gets more stability through hedging. The share of private companies in these borrowings is 63 percent ($97.58 billion). Of this, 74 percent exposure is hedged. At the same time, the stake of government companies in it is 37 percent ($55.5 billion).
Two-thirds of total ECB assets are hedged by September 2024, up from 55 percent two years ago. Some of the unhedged portion is backed by government guarantees, while others benefit from natural hedges, where borrowers earn in foreign currency. Natural hedges accounted for about 1.5 percent of unhedged ECB by September 2024, the report said.
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