Foreign Investment comprises of investment in capital and
investment through borrowings. Investment in capital is channelled
through Foreign Direct Investment etc. Investment through
borrowings is covered by way of External Commercial Borrowings,
which is governed by Foreign Exchange Management (Borrowing or
lending in Foreign Exchange) Regulations, 2000.
As per newspaper reports Indian Enterprises during the course of
last few years have accessed significant amounts of foreign debt.
In 2011-12, Indian Companies raised a borrowing of about USD 36
billion. Further, borrowings in September, 2012 were recorded to be
USD 2.78 billion. According to the Reserve Bank of India (RBI)
data, most of the borrowings were for import of capital goods,
modernisation, new projects and rupee expenditure for import of
capital goods.
