Regulations of ECB and Impacts

Abstract

resident entities from non- resident eligible lenders under norms 
established by the government.The government amends its policies 
from time to time to enable domestic enterprises to borrow from global 
markets.Since liberalization, Government of India also has relaxedits 
policies to allow Indian firms to access the international capital markets. 
Present study focuses on examination of the impact of key changes in 
ECB policy done by government of India on ECB inflows. This is 
performed by conducting CHOW breakpoint analysis and ARIMA 
modelling methodologies. The results of CHOW break test indicate 
significant impact of policy changes on the pattern of capital inflows, 
and the findings of ARIMA model indicate a significant gap between 
actual and forecasted ECB inflows.