India's external debt soars to $296 Billion

Friday, 31 December 2010, 12:34 Hrs
Printer Print Email Email
New Delhi: India's external debt rose to $295.8 billion by Sep 30, 2010, an increase of $33.5 billion during the first six months of current fiscal, on increased short-term borrowings and depreciation in value of the U.S. dollar.

Long-term debt increased by 9.5 percent to $229.8 billion, while short-term debt soared 25.8 percent to $66 billion during the first two quarters of fiscal 2010-11, according to data released by the finance ministry Friday.

India's total external debt rose to $295.8 billion by Sep 30, 2010, from $262.3 billion recorded at end-March 2010, registering an increase of 12.8 percent.

Of the total increase of $33.5 billion, 18.8 percent or $6.3 billion was because of the valuation effect arising from depreciation of the U.S. dollar against major international currencies, a finance ministry statement said.

Short-term debt accounted for 22.3 percent of India's total external debt while the rest 77.7 percent was long-term debt.

Component-wise, the share of commercial borrowings stood highest at 27.8 percent followed by Non-Resident Indian (NRI) deposits 16.9 percent and multilateral debt 15.8 percent.

The ratio of short-term external debt to foreign exchange reserves was 22.5 percent at end-September 2010 as compared to 18.8 percent at end-March 2010.

The share of U.S. dollar denominated debt was the highest in external debt stock at 53.9 percent at the end of second quarter of fiscal 2010-11, followed by Indian rupee 18.8 percent, Japanese Yen 11.8 percent, SDR 9.8 percent and Euro 3.6 percent.
Source: IANS
SPOTLIGHT
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..