1.25 lakh Indian banks and financial companies still have outstanding loans to foreign companies, according to data released by the Reserve Bank of India on Monday.
The banks and the financial companies in question had outstanding loans worth nearly Rs. 20,000 crore as of December 31, which stood at Rs. 9,943 crore at the end of September.
They have borrowed more than Rs. 7,200 crore from foreign firms since 2009, according the data.
“These companies can still access our infrastructure, including the ports, which are essential to them.
But as the Indian government has taken a tough stand against corruption, these companies are unable to access these infrastructure,” RBI Governor Raghuram Rajan said.
Rajan said that foreign companies will have to do more to attract investments from Indian banks if they want to secure loans from Indian lenders.
He also said that the Government has initiated an aggressive campaign to increase foreign investment in India, which will help the sector grow and grow at a more rapid rate.
The RBI said that since the country’s new prime minister Narendra Modi took office in May last year, the government has initiated a series of initiatives to increase investments.
The Government has also announced a $500 crore funding programme for Indian firms to develop products and services in other markets.