External debt marginally down to $122 bn in Q2

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.

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 .

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.

US dollar continued to dominate the currency composition of India's external debt.

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.

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.

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