27 January 2025: PIB Summary For UPSC
India’s Investment and External Commercial Borrowings (ECB) Landscape
(Source – https://pib.gov.in/PressReleseDetail.aspx?PRID=2096480®=3&lang=1 )
Context |
This news discusses India’s growing investment, corporate gross block, household savings, and trends in External Commercial Borrowings (ECBs). |
Investment Announcements (9MFY25)
- Investment activity in India continues to grow rapidly.
- In the first nine months of FY25 (April-December 2024), total investment announcements reached ₹32.01 lakh crore, a 39% increase from ₹23 lakh crore in FY24.
- The private sector’s contribution increased significantly, accounting for nearly 70% of these announcements, up from 56% in FY24.
The following table shows the key details regarding India’s investment ecosystem,
Category | Details |
Gross Block of Indian Corporates | ₹106.50 lakh crore as of March 2024; ₹8 lakh crore added annually over the last five years. |
Household Net Financial Savings | 5.3% of GDP in FY24; savings in physical assets increased from 12.9% to 13.5% of GDP. |
Investment as a Percentage of GDP | Government investment: 4.1% of GDP in FY23; Private sector investment: 11.9% of GDP in FY23, the highest since FY16. |
External Commercial Borrowings (ECBs) as of September 2024 | Total outstanding ECBs: $190.4 billion; 63% held by private sector; 74% hedged by private companies. |
ECBs in FY25 (Up to November 2024) | ECB registrations reached $33.8 billion by November 2024, with nearly half directed toward capital goods import and modernization. |
Check more-Â 25 January 2025: PIB Summary For UPSC