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Aviation Soars: Airlines Tap Billions in Overseas Funding
10 Feb
Summary
- Indian companies secured $44.36 billion in external commercial borrowings by December 2025.
- Air India and IndiGo borrowed heavily for aircraft imports and fleet modernization.
- Manufacturing, finance, infrastructure, and transport sectors saw significant borrowing.
As of December 2025, India's total External Commercial Borrowings (ECBs) reached $44.36 billion, driven by significant overseas funding from domestic companies for expansion and capital investment. These funds were primarily allocated towards importing capital goods, executing new projects, and modernizing facilities.
The manufacturing, financial services, infrastructure, and transportation sectors accounted for a substantial portion of these borrowings, reflecting ongoing economic investment. External Commercial Borrowings are loans obtained by Indian entities from foreign lenders, utilized for capital expenditures, new projects, and working capital needs.
The aviation sector notably contributed to this trend, with Air India and IndiGo securing large sums for capacity expansion and fleet modernization. Air India alone borrowed $2.75 billion, earmarked for capital goods imports, primarily for aircraft acquisition. IndiGo also raised approximately $4.56 billion for similar purposes, sourcing funds from leasing companies to support its aircraft induction strategy.
