India owes $230.85 billion to the external world as debt as on December 31, 2008, which is slightly less than $254.6 billion of forex reserves the country enjoyed at that point of time.
The total external debt marginally increased by 2.8 per cent from $224.65 billion at end-September 2008, as commercial external borrowings by India Inc continued to enjoy major chunk of external debt, as the government swung into action by liberalising overseas debt regime after these sources of funds dried up.
According to an official statement here, external commercial borrowings increased by $4.6 billion to $66.16 billion with its share in total debt increasing to 28.7 per cent from 27.4 per cent at end-September 2008.
Comparison between these two periods assumes importance as external sources of funds dried up after Lehman Brothers filed for bankruptcy in mid-September.
The data showed that the share of short-term debt declined to 20.6 per cent at $47.48 billion as on December end, 2008, from 22.6 per cent at $50.68 million as on September end.
After east Asian crisis of late 1990s, large chunk of short-term debt is not considered good for economic health of the country.
