06/10/2025
The RBI’s move to allow ECBs in FDI-eligible real estate marks a significant policy shift after decades of caution post the 1997 Asian crisis. While it may boost funding, it raises concerns over currency risk and sectoral instability. Real estate's illiquidity and weak governance make foreign debt a risky proposition. Strong safeguards and oversight will be essential.
The Reserve Bank of India is poised to liberalise its foreign loan regime, potentially allowing External Commercial Borrowings (ECBs) in real estate for the first time in three decades. This policy shift, previously resisted due to the '97 Asian Crisis, aims to bolster the rupee with increased dolla...