ECBs, NRI deposits push external debt to $475.8 bn

Mumbai: India’s total external debt rose by $29.5 billion, or 6.6 percent, to $475.8 billion during 2014-15 fiscal, mainly due to increase in external commercial borrowings and NRI deposits. However, as percentage of the Gross Domestic Product (GDP), the country’s external debt works out to be 23.8 percent at the end of March 2015, marginally up from 23.6 percent as on March 2014.[caption id=“attachment_2169845” align=“alignleft” width=“380”]  Rising deposits. Reuters[/caption] “India’s external debt at end-March 2015 showed an increase of $29.5 billion (6.6 percent) over end-March 2014, due to the rise in commercial borrowings and NRI deposits,” RBI said in a release. “Further, the increase in the magnitude of external debt was partly offset by the valuation gains resulting from the appreciation of the US dollar vis-a-vis Indian rupee and other major currencies,” it said. The long-term debt at the end of March was $391.1 billion, reflecting an increase of 10.3 percent over the March 2014 level. The short-term external debt was $84.7 billion in March, showing a decline of 7.6 percent over the March 2014 level. Short-term debt, the release said, accounted for 17.8 percent of the total external debt as at March-end as against 20.5 percent at March 2014. The shares of government (sovereign) and non-government debt in the total external debt increased to 18.9 percent and 81.1 percent, respectively, at the end of March 2015. According to the release, the share of US Dollar denominated debt was the highest in the external debt stock at 58.3 percent at the end of March 2015, followed by debt denominated in Indian rupee (27.9 percent), SDR (5.8 percent), Japanese yen (4 per cent) and Euro (2.4 per cent). PTI