External debt up 2.5% in July-Sept

The percentage rise is, however, lower than that recorded in the last quarter when it grew 5.52 per cent, according to the quarterly statistics released by the government on Wednesday.

Within the total debt stock, the Non-Resident Indian (NRI) deposits accounted for the largest chunk, with an increase of 6.6 per cent during the period.

This partly reflects their interest in rupee denominated deposits, based on the persisting difference in domestic and international interest rates.

The increase in debt stock was 7.5 per cent during the March-September period, while the increase was 9.8 per cent between end-September 2002 and September 2003.