The onset of globalization, focussing on integrating the world
into a single state has encouraged the growth in the level of
business operations. The increase in the level of international
trade has boosted the Indian economy to a great extent. With a view
to promote the trading activities with foreign entities, the
Government of India has taken numerous steps such as introduction
of investor friendly policies, better opportunities, easier
availability of resources and labour, etc. One of the modes of
investment in India is through External Commercial Borrowing.
External Commercial Borrowings
The External Commercial Borrowings (hereinafter referred to as
"ECB") enables resident entities to borrow from
recognized non-resident entities in the forms of loans including
bank loans, securitized instruments (e.g. floating rate notes and
fixed rate bonds, non-convertible, optionally convertible or
partially convertible preference shares / debentures), buyers'
credit,
