External debt at $190.5 bn

TAKING THE PULSE OF INDIA'S FINANCIAL HEALTH

India's external debt rose by $9.9 billion to $190.5 billion at the end of September 2007 over $180.57 billion on June 30, 2007.

The stock of outstanding external debt was pushed by a rise in external commercial borrowings (ECBs), NRI deposits, multilateral debt and short-term debt.

The valuation change arising out of weakening of the dollar against major international currencies and the Indian rupee could explain about $5 billion increase in debt.

During the half year (April-September), the external debt stock in terms of the US dollar has risen by $21 billion (12.3 per cent), of which $7 billion is accounted for by the depreciation of the dollar in the international market, according to data released by the government.

The short-term debt stood at $30.8 billion, accounting for 16.2 per cent of the total external debt.

The coverage of short-term debt is more comprehensive with the inclusion of suppliers' credits up to six months and investment by foreign institutional investors (FIIs) in short-term debt instruments.

The short-term debt at $30.8 billion accounted for about 12 per cent total foreign exchange reserves ($247.8 billion) at the end of September 2007.

At the end of September, India's foreign exchange reserves, including foreign currency assets of the Reserve Bank of India (RBI), gold, SDRs and Reserve Tranche Position in the International Monetary Fund (IMF) stood at $247.8 billion. It provides a cover of 130 per cent to total external debt.