India's external debt up at $125.2-bn in FY06
Country's external debt has risen to $125.2 billion as on March 31, 2006, compared to $123.2 billion in the previous fiscal.
By PTI |
NEW DELHI: Country's external debt has risen to $125.2 billion as on March 31, 2006, compared to $123.2 billion in the previous fiscal.
The increase in external debt was $2 billion during 2005-06 compared to 11.6 billion a year ago, an official statement said.
The lower level of accumulation of external debt in 2005-06 was attributed mainly to redemption of $5.5 billion India Millennium Deposits by State Bank of India in December, 2005.
Component-wise, the increase in debt stock during 2005-06 was mainly due to escalation in NRI deposits and surge in short-term credits, which were partially offset by contraction in commercial borrowings and bilateral loans.
According to a status report on the subject, released today, India has improved her ranking from being third in 1991 to eighth in 2004 among the top 10 debtor countries in the world.
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The country's external debt-to-GDP ratio has dropped gradually from 38.7 per cent in 1991-92 to 15.8 per cent in 2005-06.Debt service as a proportion of current receipts, technically called debt service ratio, declined over the years to reach a level of 6.1 per cent (excluding one-off transaction of repayments under IMDs) in 2005-06.
Likewise, short-term debt to total debt and short-term debt to forex assets have shown gradual improvement, the report said.
The statement said the moderation in debt accumulation and improvement in debt sustainability indicators during the post-reform period essentially reflect committed efforts of the Government to keep external debt within manageable limits.
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India's external debt indicators such as ratios of short-term debt to total debt and short-term debt to forex reserves are the lowest among the top 10 debtor countries.Proportion of concessional loans in total debt is the highest, while debt to Gross National Income and debt service ratios are the second lowest after China for the year 2004, the report said.
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