India’s demand for external commercial borrowing (ECB) saw a huge jump last year. Data compiled by the Reserve Bank of India (RBI) shows that registrations for ECB in 2018-19 shot up by 45 per cent to $41.92 billion, compared to $28.87 billion in the previous year. Isn't this a cause for concern?
Remember that ECB registrations had declined in the three consecutive years from 2014-15. They fell by 14 per cent to $28.38 billion in 2014-15 and again dropped by another 14 per cent to $24.37 billion in 2015-16 and further declined by almost 10 per cent to $21.98 billion
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