Zeebiz Bureau
New Delhi: Overseas investors are increasingly pumping money into India's infrastructure sector, especially in the power, oil and gas, telecom and iron and steel segments, due to the prospects of high returns, a PHD Chamber report released on Monday said.
The flow of external commercial borrowings ( ECBs), that include bank loans, suppliers and buyers' credits, fixed and floating rate bonds and borrowings from private sector windows of multilateral financial institutions, surged 50 percent to USD 36 billion in 2011 as compared to USD 24 billion in the previous year, the report said.
The strong external funding can be attributed to high interest differentials available to foreign resources, vis-a-vis India, supported by high unexplored development opportunities in infrastructure within the country.
The higher inflow of ECBs in the infra sector is the reflection of the growing tendency of Indian corporate to raise funds from foreign resources as the cost of funds in India is significantly higher than international resources.
First Published: Monday, February 06, 2012, 20:51