The guarantee bridge : How loan guarantees fuel India’s corporate global ambitions
By: Mani, Sunil
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Material type: 
BookPublisher: Economic & Political Weekly Description: 61(21), May 23, 2026: p.18-21.
In:
Economic & Political WeeklySummary: The expanding role of loan guarantees in financing India’s outward foreign direct investment is examined, arguing that they form an under-recognised pillar of corporate globalisation. In the context of persistent domestic savings–investment gaps, firms increasingly use guarantees to access global debt markets. Regulatory changes, notably the 2022 Overseas Investment framework, have eased their use. While enabling expansion without immediate fiscal costs, guarantees create contingent liabilities, concentrate OFDI, and shift risks to the financial system, raising concerns of transparency, equity, and systemic stability.- Reproduced
https://www.epw.in/journal/2026/21/commentary/guarantee-bridge.html
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 61(21), May 23, 2026: p.18-21 | Available | AR139207 |
The expanding role of loan guarantees in financing India’s outward foreign direct investment is examined, arguing that they form an under-recognised pillar of corporate globalisation. In the context of persistent domestic savings–investment gaps, firms increasingly use guarantees to access global debt markets. Regulatory changes, notably the 2022 Overseas Investment framework, have eased their use. While enabling expansion without immediate fiscal costs, guarantees create contingent liabilities, concentrate OFDI, and shift risks to the financial system, raising concerns of transparency, equity, and systemic stability.- Reproduced
https://www.epw.in/journal/2026/21/commentary/guarantee-bridge.html
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