The Hindu Business Line : External debt down $1.2 b in Sept quarter

New Delhi, Dec. 31 India’s external debt stood at $222.61 billion as on end-September 2008, down $1.2 billion from $223.91 billion at the end of the previous quarter, the Finance Ministry said here on Wednesday.

While long-term debt stood at $172.5 billion, a decline of $2.69 billion in the second quarter of 2008-09, the short-term debt at end-September 2008 stood at $50.1 billion, up by $1.49 billion during the quarter under review.

The second quarter saw moderation in NRI deposits, and commercial borrowings. However, export credit increased by $1.1 billion in this period. External commercial borrowings declined to $60.34 billion as on end-September 2008, from $61.27 billion a quarter ago. NRI deposits dropped by $2 billion to $40.62 billion.

The share of private debt in total external debt has increased over a period of time, which continued during the quarter ended September 2008 as well. Private debt accounted for $166.03 billion (74.6 per cent) and Government debt amounted to $56.58 billion (25.4 per cent) of total external debt as at the end of September 2008.

Based on residual maturity, the total long term external debt stood at $130.69 billion (58.7 per cent) and short-term debt at $91.92 billion (41.3 per cent) at end September 2008.

India had the lowest level of external debt to GDP ratio among the countries whose external debt are report to the World Bank, an official release said.

In terms of currency composition of external debt, dollar-denominated debt accounted for 56.9 per cent followed by rupee (16.4 per cent). The ratio of foreign exchange reserves to total external debt at end September 2008 stood at 128.6 per cent.

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