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External Commercial Borrowings

External Commercial Borrowings are having a great importance for the developing country like India. Sources are needed for the expansion of public sector undertakings and for augmenting their resources available domestically. Acc to the guidelines of government external commercial borrowing are used for any purpose except for investment in stock market and speculation in real estate. The regulation and management of External commercial borrowings is very important to curb the malpractices and illegal transactions carried out in this process. The department of economic affairs, Ministry of Finance, Government of India with support of Reserve Bank of India monitors and regulates Indian firm access to global market.

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