Industry & Economy
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Economy
External debt rises $5 b
Our Bureau
Mumbai
,
Sept. 30
INDIA'S external debt has increased by $5 billion to $109.6 billion in the first quarter of the current fiscal from $104.6 billion as at the end of March 2003.
According to figures released by the RBI, "The increase in external debt during the quarter (April-June 2003) was mainly on account of increase in NRI deposits by $2.6 billion, external commercial borrowings by $1.1 billion and short-term trade credit by $0.9 billion.''
Short-term debt increased significantly during the first quarter from $4.6 billion as at end-March 2003 to $5.8 billion as at end-June 2003 due to increase in both components of short-term debt, namely, NRI deposits and short-term trade credit.
The increase in NRI deposits by $2.6 billion was mainly on account of an increase in NRE deposits by $2.7 billion as there was an outflow of $0.1 billion in FCNR (B) deposits. The increase in NRE deposits includes reinvestment of maturity proceeds of NR(NR)RD scheme which was discontinued with effect from April 1, 2002 of around $0.4 billion, said the RBI.
Increase in external commercial borrowing reflected rise in borrowing by corporates in the face of low international interest rates. Trade credit increase has been the result of sharp increase in India' imports.
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