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India's external debt declines by $3.6 bn in Q1

The share of ECBs continued to be the highest at 30.7 per cent of total external debt

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Press Trust of India
Last Updated : Sep 30 2013 | 8:00 PM IST
India's external debt at the end of the first quarter of the current fiscal declined by 0.9 per cent on sequential basis to $388.5 billion due to strengthening of the dollar against rupee.
 
In absolute terms, the decline was of $3.6 billion, the Reserve Bank said today.
     
"External debt as at end-June 2013 recorded a decline over the end-March 2013 largely due to valuation gains resulting from appreciation of dollar against rupee and other international currencies as well as decline in the level of external commercial borrowings (ECBs)," it said.
 

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The valuation gain during the first quarter of 2013-14, the RBI said, amounted to $9.5 billion reflecting the appreciation of dollar against the rupee and other major currencies.
 
"Thus, excluding the valuation gains, the stock of external debt as at end-June 2013 would have increased by 5.9 billion," the central bank said.
 
By the RBI data, the share of ECBs continued to be the highest at 30.7 per cent of total external debt, followed by short-term debt (24.9 per cent) and NRI deposits (18.3 per cent).
     
The share of short-term debt in total debt rose over the preceding as well as corresponding quarter of the previous year.
     
The long-term debt at $291.8 billion and short-term debt at $96.8 billion accounted for 75.1 per cent and 24.9 per cent, respectively, of the total external debt, the data revealed.
 
Based on residual maturity, the short-term debt accounted for 43.8 per cent of total external debt as at April-June 2013 quarter. Within the short-term debt, the share of NRI deposits was 28.1 per cent.
     
The dollar-denominated debt continued to be the largest with a share of 58.9 per cent in the total external debt as at end-June 2013, followed by rupee (22.6 per cent), SDR (7.6 per cent), Japanese Yen (6.0 per cent) and Euro (3.2 per cent).
 
By the RBI, government external debt stood at $78.4 billion as at end-June 2013 as against USD 81.7 billion as at March-end 2013.
     
The shares of government and non-government external debt in the total external debt were 20.2 per cent and 79.8 per cent, respectively, as at June-end 2013.

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First Published: Sep 30 2013 | 7:57 PM IST

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