India Inc's foreign loans fall 35% on Future Retail default, shaky economy

Interest rates have gone up to as high as 10%, making it uneconomical to raise funds from abroad

The tables seem to have turned for Indian firms that had raised billions of dollars from overseas in the pre-Covid era. With money now difficult to come by, corporates have raised 35 per cent less funds from foreign sources on a year-to-date basis (in CY20), as compared to the same period last year.

Besides the pandemic that resulted in higher interest rates, the default by Future Retail has dealt a blow to investor sentiment, according to analysts. 

“While looking at trends in the wider market, we can see that even SoftBank has had problems in raising funds from investors. The rates at