A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India

Sagar Bamboli; Anjanadevi Tamragundi

doi:doi:10.11648/j.ebm.20251106.12

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A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India

Sagar Bamboli^*

, Anjanadevi Tamragundi

Published in European Business & Management (Volume 11, Issue 6)

Received: 7 October 2025 Accepted: 29 October 2025 Published: 9 December 2025

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Abstract

India has been thriving towards the international capital markets to meet its growing financial needs. The impact of such corporate strategy on India's economic growth has been a subject of significant interest to the government, economists, and investors. This article aims to analyse the trends in international capital raising made by Indian companies and also investigates the linkage between the international capital raisings by Indian companies and India’s economic performance, using Gross Domestic Product (GDP) as an indicator of economic performance. The study uses time series data collected from secondary sources spanning the period from 1992-93 to 2023-24 and finds a fluctuating trend of international capital raising made by Indian companies, indicating that they are highly influenced by global economic conditions, with a total of Rs. 12,68,165 crores raised across 1,043 issues. The study also reveals that the mode of international capital raising by Indian companies has seen a gradual shift from the international equity market to the debt market. The independent t-test shows a statistically significant difference in the mean value of capital raised in the international equity and debt markets. Further to investigate the linkage of international capital raising by Indian companies with economic performance, in the short-term Granger Causality Test and Simple OLS regression have been used. The Augmented Dickey-Fuller (ADF) test is used to check the presence of the unit root and confirms that both variables are stationary at the first difference. The Granger causality test finds a unidirectional causality between international capital raising by Indian companies and GDP, indicating that an increase in international capital raising will lead to an increase in GDP. The study also finds that a strong positive correlation (r = 0.68) between the two variables and the OLS regression model confirms a positive impact of international capital raising on economic performance in India. The study recommends SEBI and the Government of India to continue fostering a conducive environment for international capital raising while balancing associated costs and benefits.

Published in	European Business & Management (Volume 11, Issue 6)
DOI	10.11648/j.ebm.20251106.12
Page(s)	202-212
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

International Capital Markets, GDP, Globalisation, Economic Performance, Indian Economy

References

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Bamboli, S., Tamragundi, A. (2025). A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India. European Business & Management, 11(6), 202-212. https://doi.org/10.11648/j.ebm.20251106.12

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Bamboli, S.; Tamragundi, A. A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India. Eur. Bus. Manag. 2025, 11(6), 202-212. doi: 10.11648/j.ebm.20251106.12

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Bamboli S, Tamragundi A. A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India. Eur Bus Manag. 2025;11(6):202-212. doi: 10.11648/j.ebm.20251106.12

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@article{10.11648/j.ebm.20251106.12,
  author = {Sagar Bamboli and Anjanadevi Tamragundi},
  title = {A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India},
  journal = {European Business & Management},
  volume = {11},
  number = {6},
  pages = {202-212},
  doi = {10.11648/j.ebm.20251106.12},
  url = {https://doi.org/10.11648/j.ebm.20251106.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20251106.12},
  abstract = {India has been thriving towards the international capital markets to meet its growing financial needs. The impact of such corporate strategy on India's economic growth has been a subject of significant interest to the government, economists, and investors. This article aims to analyse the trends in international capital raising made by Indian companies and also investigates the linkage between the international capital raisings by Indian companies and India’s economic performance, using Gross Domestic Product (GDP) as an indicator of economic performance. The study uses time series data collected from secondary sources spanning the period from 1992-93 to 2023-24 and finds a fluctuating trend of international capital raising made by Indian companies, indicating that they are highly influenced by global economic conditions, with a total of Rs. 12,68,165 crores raised across 1,043 issues. The study also reveals that the mode of international capital raising by Indian companies has seen a gradual shift from the international equity market to the debt market. The independent t-test shows a statistically significant difference in the mean value of capital raised in the international equity and debt markets. Further to investigate the linkage of international capital raising by Indian companies with economic performance, in the short-term Granger Causality Test and Simple OLS regression have been used. The Augmented Dickey-Fuller (ADF) test is used to check the presence of the unit root and confirms that both variables are stationary at the first difference. The Granger causality test finds a unidirectional causality between international capital raising by Indian companies and GDP, indicating that an increase in international capital raising will lead to an increase in GDP. The study also finds that a strong positive correlation (r = 0.68) between the two variables and the OLS regression model confirms a positive impact of international capital raising on economic performance in India. The study recommends SEBI and the Government of India to continue fostering a conducive environment for international capital raising while balancing associated costs and benefits.},
 year = {2025}
}

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T1  - A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India
AU  - Sagar Bamboli
AU  - Anjanadevi Tamragundi
Y1  - 2025/12/09
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JO  - European Business & Management
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AB  - India has been thriving towards the international capital markets to meet its growing financial needs. The impact of such corporate strategy on India's economic growth has been a subject of significant interest to the government, economists, and investors. This article aims to analyse the trends in international capital raising made by Indian companies and also investigates the linkage between the international capital raisings by Indian companies and India’s economic performance, using Gross Domestic Product (GDP) as an indicator of economic performance. The study uses time series data collected from secondary sources spanning the period from 1992-93 to 2023-24 and finds a fluctuating trend of international capital raising made by Indian companies, indicating that they are highly influenced by global economic conditions, with a total of Rs. 12,68,165 crores raised across 1,043 issues. The study also reveals that the mode of international capital raising by Indian companies has seen a gradual shift from the international equity market to the debt market. The independent t-test shows a statistically significant difference in the mean value of capital raised in the international equity and debt markets. Further to investigate the linkage of international capital raising by Indian companies with economic performance, in the short-term Granger Causality Test and Simple OLS regression have been used. The Augmented Dickey-Fuller (ADF) test is used to check the presence of the unit root and confirms that both variables are stationary at the first difference. The Granger causality test finds a unidirectional causality between international capital raising by Indian companies and GDP, indicating that an increase in international capital raising will lead to an increase in GDP. The study also finds that a strong positive correlation (r = 0.68) between the two variables and the OLS regression model confirms a positive impact of international capital raising on economic performance in India. The study recommends SEBI and the Government of India to continue fostering a conducive environment for international capital raising while balancing associated costs and benefits.
VL  - 11
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Author Information

Sagar Bamboli

PG Department of Studies in Commerce, Karnatak University, Dharwad, India

Contact Email

http://orcid.org/0009-0003-1401-5828
Anjanadevi Tamragundi

PG Department of Studies in Commerce, Karnatak University, Dharwad, India

Contact Email

http://orcid.org/0000-0002-3978-5170

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Bamboli, S., Tamragundi, A. (2025). A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India. European Business & Management, 11(6), 202-212. https://doi.org/10.11648/j.ebm.20251106.12

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Bamboli, S.; Tamragundi, A. A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India. Eur. Bus. Manag. 2025, 11(6), 202-212. doi: 10.11648/j.ebm.20251106.12

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Bamboli S, Tamragundi A. A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India. Eur Bus Manag. 2025;11(6):202-212. doi: 10.11648/j.ebm.20251106.12

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@article{10.11648/j.ebm.20251106.12,
  author = {Sagar Bamboli and Anjanadevi Tamragundi},
  title = {A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India},
  journal = {European Business & Management},
  volume = {11},
  number = {6},
  pages = {202-212},
  doi = {10.11648/j.ebm.20251106.12},
  url = {https://doi.org/10.11648/j.ebm.20251106.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20251106.12},
  abstract = {India has been thriving towards the international capital markets to meet its growing financial needs. The impact of such corporate strategy on India's economic growth has been a subject of significant interest to the government, economists, and investors. This article aims to analyse the trends in international capital raising made by Indian companies and also investigates the linkage between the international capital raisings by Indian companies and India’s economic performance, using Gross Domestic Product (GDP) as an indicator of economic performance. The study uses time series data collected from secondary sources spanning the period from 1992-93 to 2023-24 and finds a fluctuating trend of international capital raising made by Indian companies, indicating that they are highly influenced by global economic conditions, with a total of Rs. 12,68,165 crores raised across 1,043 issues. The study also reveals that the mode of international capital raising by Indian companies has seen a gradual shift from the international equity market to the debt market. The independent t-test shows a statistically significant difference in the mean value of capital raised in the international equity and debt markets. Further to investigate the linkage of international capital raising by Indian companies with economic performance, in the short-term Granger Causality Test and Simple OLS regression have been used. The Augmented Dickey-Fuller (ADF) test is used to check the presence of the unit root and confirms that both variables are stationary at the first difference. The Granger causality test finds a unidirectional causality between international capital raising by Indian companies and GDP, indicating that an increase in international capital raising will lead to an increase in GDP. The study also finds that a strong positive correlation (r = 0.68) between the two variables and the OLS regression model confirms a positive impact of international capital raising on economic performance in India. The study recommends SEBI and the Government of India to continue fostering a conducive environment for international capital raising while balancing associated costs and benefits.},
 year = {2025}
}

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TY  - JOUR
T1  - A Study on the Impact of International Capital Raising by Companies on Economy: Evidence from India
AU  - Sagar Bamboli
AU  - Anjanadevi Tamragundi
Y1  - 2025/12/09
PY  - 2025
N1  - https://doi.org/10.11648/j.ebm.20251106.12
DO  - 10.11648/j.ebm.20251106.12
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 202
EP  - 212
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20251106.12
AB  - India has been thriving towards the international capital markets to meet its growing financial needs. The impact of such corporate strategy on India's economic growth has been a subject of significant interest to the government, economists, and investors. This article aims to analyse the trends in international capital raising made by Indian companies and also investigates the linkage between the international capital raisings by Indian companies and India’s economic performance, using Gross Domestic Product (GDP) as an indicator of economic performance. The study uses time series data collected from secondary sources spanning the period from 1992-93 to 2023-24 and finds a fluctuating trend of international capital raising made by Indian companies, indicating that they are highly influenced by global economic conditions, with a total of Rs. 12,68,165 crores raised across 1,043 issues. The study also reveals that the mode of international capital raising by Indian companies has seen a gradual shift from the international equity market to the debt market. The independent t-test shows a statistically significant difference in the mean value of capital raised in the international equity and debt markets. Further to investigate the linkage of international capital raising by Indian companies with economic performance, in the short-term Granger Causality Test and Simple OLS regression have been used. The Augmented Dickey-Fuller (ADF) test is used to check the presence of the unit root and confirms that both variables are stationary at the first difference. The Granger causality test finds a unidirectional causality between international capital raising by Indian companies and GDP, indicating that an increase in international capital raising will lead to an increase in GDP. The study also finds that a strong positive correlation (r = 0.68) between the two variables and the OLS regression model confirms a positive impact of international capital raising on economic performance in India. The study recommends SEBI and the Government of India to continue fostering a conducive environment for international capital raising while balancing associated costs and benefits.
VL  - 11
IS  - 6
ER  -

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