EXTERNAL COMMERCIAL BORROWINGS (ECB) BY SERVICES SECTOR – FURTHER LIBERALIZATION

Under the extent ECB guidelines, borrowers in the services sector are not eligible to avail ECB under the Automatic Route. It has been decided, in consultation with the Govt. of India, to allow entities in the service sector viz. hotels, hospitals and software companies to avail ECB up to USD 100 million, per financial year, for the purpose of import of capital goods under the Approval Route. All other aspects of ECB policy shall remain unchanged.It is also clarified that the existing guidelines on trade credit, allowing companies including those in the services sector, to avail trade credit up to 20 million
per import transaction, for a period less than 3 years, for import of capital goods, shall continue.