India's foreign debt expands to $143 bn
India's external debt has increased at a time when its forex reserves have totaled to over $182 bn.
By INDIATIMES NEWS NETWORK |
NEW DELHI: India’s external debt expanded to a staggering USD 142.7 billion (Rs 632,051 crore) despite steps taken by Government over last few years to retire high cost loans and reduce the interest liability.
The latest data released by Finance Ministry has reflected the fact that India’s long term debt has expanded by US $ 6.2 billion in the quarter ending December 2006.
Finance Ministry has attributed the growth in external debt stock to “an increase in multi-lateral debt, external commercial borrowings and NRI deposits, partly offset by marginal decline in short-term debt”.
The increase in India’s external debt stock has come at a time when its foreign exchange reserves have totaled to over US $ 182 billion.
Out of the total debt stock, the largest increase has been reported in the external commercial borrowings (ECBs) by about 11 percent over the quarter ending September 2006. Total ECBs as on January 1, 2007 stand at US $ 35.980 billion.
During the period, the borrowings from multi-lateral agencies has gone up by US $ 975 million, followed by bilateral debt at a modest US $ 36 million while the export credits went up by US $ 299 million.
Finance Ministry data has also revealed that the NRI deposits rose by US $ 1.867 billion in quarter ending December 2006 thereby totaling the deposits to US $ 38.382 million. NRI deposits constitute the largest component of India’s external debt stock followed by ECBs mostly accessed by banks, financial institutions and corporates.
As on January 1, 2007, NRI deposits account for 26.9 percent of India’s total debt outstanding.
The latest data released by Finance Ministry has reflected the fact that India’s long term debt has expanded by US $ 6.2 billion in the quarter ending December 2006.
Finance Ministry has attributed the growth in external debt stock to “an increase in multi-lateral debt, external commercial borrowings and NRI deposits, partly offset by marginal decline in short-term debt”.
The increase in India’s external debt stock has come at a time when its foreign exchange reserves have totaled to over US $ 182 billion.
Out of the total debt stock, the largest increase has been reported in the external commercial borrowings (ECBs) by about 11 percent over the quarter ending September 2006. Total ECBs as on January 1, 2007 stand at US $ 35.980 billion.
During the period, the borrowings from multi-lateral agencies has gone up by US $ 975 million, followed by bilateral debt at a modest US $ 36 million while the export credits went up by US $ 299 million.
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Finance Ministry data has also revealed that the NRI deposits rose by US $ 1.867 billion in quarter ending December 2006 thereby totaling the deposits to US $ 38.382 million. NRI deposits constitute the largest component of India’s external debt stock followed by ECBs mostly accessed by banks, financial institutions and corporates.
As on January 1, 2007, NRI deposits account for 26.9 percent of India’s total debt outstanding.
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