External debt rises to $316.9 bn till June

The government today said India's external debt rose to $316.9 billion till June, 2011 due to increase in commercial borrowings and short-term trade credits.

The external debt stood at $306.5 billion at the end of March, 2011.

"The increase in external debt was largely on account of rise in commercial borrowings and short-term trade credits," Minister of State for Finance Namo Narain Meena said in a written reply to the Lok Sabha.

He added that of the total debt, long-term debt stood at $248.4 billion, while short-term debt accounted for $68.5 billion.

Meena said the external debt to GDP ratio has declined from 21.1% in 2001-02 to 17.3% in 2010-11 owing to the "prudent external debt management policy followed by the government".