In the fiscal year 2026 (FY26), Indian corporates significantly reduced their overseas bond issuances to $8.1 billion, down from $13.9 billion in FY25, marking a decline of nearly 40%. This shift reflects a preference for local funding amid a 10% depreciation of the Indian rupee, the most substantial decline in 14 years. Data from Cbonds indicates that while offshore fundraising has decreased, domestic bond issuances remained steady at ₹12.32 lakh crore during April-February FY26, compared to ₹12.97 lakh crore the previous year. Factors contributing to this trend include elevated global interest rates, geopolitical uncertainties, and attractive borrowing costs within the domestic market, which hovered around 7-8%. The Reserve Bank of India (RBI) has recently relaxed external commercial borrowing (ECB) norms, increasing limits to $1 billion and easing maturity requirements, aiming to enhance the accessibility of offshore funding. However, companies are currently hesitant to commit to offshore markets due to high hedging costs and currency risks, with many opting to refinance existing dollar liabilities through local bonds. This trend of prioritizing domestic over offshore funding is expected to continue in the near term as firms monitor global developments.