India's external debt, as at end-June 2014, was placed at USD 450.1 billion showing an increase of USD 7.9 billion or 1.8% over the level at end-March 2014.
Of the total absolute increase of USD 7.9 billion in total external debt, a marginal increase of about USD 0.4 billion during the quarter was on account of valuation change, reflecting a marginal depreciation of the US dollar against the Indian rupee and other major currencies.
The increase in total external debt was primarily on account of rise in commercial borrowings by USD 6.3 billion over end-March 2014. Outstanding NRI deposits with a rise of USD 2.4 billion over end-March 2014 were the second largest source of increase in India's external debt.
In terms of major components, the share of commercial borrowings continued to be the highest at 34.2% of total external debt, followed by NRI deposits (23.6%) and short-term debt based on original maturity (19.5%).
The share of short-term debt in total debt witnessed a decline over the preceding quarter as well as the corresponding quarter of the previous year. Short-term debt at USD 87.9 billion accounted for 19.5% of the total external debt as at end-June 2014 as compared to 20.2% at end-March 2014.
With decline in short-term debt, the ratio of short-term debt (original maturity) to foreign exchange reserves declined to 27.8% as at end-June 2014 from 29.3% as at end-March 2014. Similarly, on residual maturity basis, the ratio of short-term debt to foreign exchange reserves worked out to 55.3% at end-June 2014 as compared with 57.4% at end-March 2014.
The US dollar denominated debt continued to be the largest component of India's external debt with a share of 61.1% as at end-June 2014, followed by Indian rupee (22.1%), SDR (6.8%), Japanese Yen (4.9%) and Euro (3.1%).
Government (Sovereign) external debt stood at USD 85.4 billion as at end-June 2014 as against USD 81.5 billion as at end-March 2014. The shares of Government and non-Government external debt in the total external debt were 19% and 81%, respectively, as at end-June 2014.
