India's external debt rises 12.9% to US$390 billion in FY2013

India's external debt stood at US$ 390.0 billion as at end-March 2013 showing an increase of US$ 44.6 billion or 12.9% over the level at end-March 2012. The increase in total external debt during financial year 2012-13 was primarily because of rise in short-term trade credit. There has been sizeable rise in external commercial borrowings (ECBs) and rupee denominated Non-resident Indian deposits as well.

Excluding the valuation change (gain) due to the movement of US dollar (appreciation) against major international currencies and Indian rupee, the external debt as at end-March 2013 would have increased by US $ 55.8 billion over end-March 2012.

In terms of major components, the share of external commercial borrowings continued to be the highest at 31.0% of total external debt, followed by short term debt (24.8%) and NRI deposits (18.2%).

The share of short-term debt in total debt, by original maturity, was 24.8%. Based on residual maturity, short-term debt accounted for 44.2% of the total external debt as at end-March 2013. Of this, the share of NRI deposits was 28.4%.

The ratio of short-term debt (original maturity) to foreign exchange reserves rose to 33.1% as at end-March 2013 from 26.6% as at end-March 2012.

The debt denominated in US dollar continued to account for the highest share of 57.2% in total external debt as at end-March 2013, followed by that denominated in Indian rupee (24.0%) and SDR (7.5%).

The ratio of foreign exchange reserves to external debt as at end-March 2013 at 74.9% was lower than the level of end-March 2012 (85.2%).

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