India's external debt at $ 400.3 billion - Eastern Financiers

India's external debt was at $ 400.3 billion, including government debt of $77.3 billion, at the end of September. The total debt of $ 400.3 billion showed a decline of $9 million over the March-end level. The government further said that the long-term debt was $ 305.5 billion at the end of September, showing an increase of 0.6% over March 31 level, while short-term debt declined by 2 % to $94.8 billion.

India's foreign exchange reserves provided 69.3% cover to the total external debt as of September end, as against 73% on March 31. The ministry said the debt has remained within manageable limits as indicated by the external debt to GDP ratio of 21.7% and debt service ratio of 5.9% in 2012-13. It added that the policy continues to focus on monitoring long and short-term debt, raising sovereign loans on concessional terms with longer maturities, regulating external commercial borrowings through end-use, all-in-cost and maturity restrictions and rationalising interest rates on Non-Resident Indian deposits.

Source : Equity Bulls

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