India's external debt up 13 per cent at $390 billion in 2012-13

NEW DELHI: India external debt indicators worsened in 2012-13 as the country scrambled to raise quick funds to meet the record high current account deficit.

External debt to GDP ratio rose from the previous fiscal, share of short-term debt increased while share of concessional debt in the total debt dropped.

“With rising debt flows, deceleration in GDP growth and depreciating rupee, key external debt indicators witnessed some deterioration as at end-March 2013 as compared to end-March 2012,” the finance ministry said in a statement on Friday.

India’s external debt stock stood at $390 billion by the end of March 2013, against $345.5 billion a year before, the latest finance ministry report India’s External debt: A Status Report 2012-13 suggested. The external debt to GDP went up to 21.2% against 19.7% the previous year. “The rise is mainly due to increase in shortterm debt, commercial borrowings and non-resident Indian deposits,” the statement said.

Short term debt, a key measure of the sustainability of external debt, deteriorated and the foreign exchange cover for such debt fell. The share of short term debt in the total debt of the country rose to 24.8% at the end of 2012-13 from 22.6% a year ago.