The country's total external debt has come down by 1.1 per cent in the second quarter ended June 2005 to $ 122.14 billion against $123.45 billion in first quarter. | |
| According to the data released by the Reserve Bank of India, the decline of $1.3 billion has been mainly on account of valuation effects of appreciation of US dollar against other major international currencies. |
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| While trade credit has gone up from $4.9 billion to $5.2 billion quarter over quarter registering an increase of 5.2 per cent, rupee debt fell by $154 million . |
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| Long term debt declined by 0.9 per cent from $115.9 billion to $114.87 billion whereas short term debt came down by 3.3 per cent from $7.5 billion to $7.2 billion. NRI deposits has marginally gone up by 0.2 per cent from $32.7 billion to $32.8 billion. |
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| US dollar continued to dominate the currency composition of India's external debt. |
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| Going by the indicators of the debt sustainability, foreign exchange reserves provided a cover (reserves/total debt )of 113.3 per cent to the external debt shock at the end of June 2005 against 114.7 in the previous quarter. |
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| While ratio of short term to total debt posted a marginal decline from 6.1 per cent to 6 per cent, ratio of short-term debt to reserves remained stable. |
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Concessional debt to total debt came down from 33.5 per cent in March 2005 to 32.6 in June 2005.
| THE BIG PICTURE
International Investment Position of India in $bn: | | 2002 PR | 2003 PR | 2004 PR | 2005 P | | InIP, net | -69.12 | -60.39 | -47.01 | -40.88 | | A) Assets | 73.62 | 95.59 | 137.12 | 169.26 | | 1. Direct Investment | 4.01 | 5.83 | 7.08 | 9.57 | | 2. Portfolio Investment | 0.65 | 0.78 | 0.76 | 0.81 | | 2.1 Equity Securities | 0.34 | 0.37 | 0.40 | 0.40 | | 2.2 Debt Securities | 0.31 | 0.41 | 0.36 | 0.41 | | 3. Other Investment | 14.24 | 12.88 | 16.33 | 17.37 | | 3.1 Trade Credits | 0.75 | 1.10 | 1.90 | 3.94 | | 3.2 Loans | 2.20 | 1.41 | 1.74 | 1.84 | | 3.3 Currency and Depos | 8.75 | 7.52 | 9.55 | 8.30 | | 3.4 Other Assets | 2.53 | 2.86 | 3.14 | 3.29 | | 4. Reserve Assets | 54.72 | 76.10 | 112.96 | 141.51 | | B) Liabilities | 142.74 | 155.99 | 184.13 | 210.13 | | 1. Direct Investment | 25.42 | 31.22 | 39.10 | 44.51 | | 2. Portfolio Investment | 31.54 | 32.41 | 43.72 | 55.47 | | 2.1 Equity Securities | 18.61 | 20.09 | 33.95 | 42.77 | | 2.2 Debt Securities | 12.93 | 12.32 | 9.77 | 12.70 | | 3. Other Investment | 85.78 | 92.35 | 101.30 | 110.15 | | 3.1 Trade Credits | 3.83 | 4.76 | 6.28 | 9.56 | | 3.2 Loans | 62.72 | 61.10 | 61.9 | 65.88 | | 3.3 Currency and Depos | 18.51 | 25.57 | 32.18 | 33.50 | | 3.4 Other Assets | 0.72 | 0.92 | 0.94 | 1.22 | | Note: PR - Partially Revised, P - Provisional |
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