India's external debt stood at $155 billion when last fiscal year ended, showing an increase of 22.6 per cent, an official statement of Finance Ministry said.
The country added $28.5 billion more debt as on March 31. But almost 10 per cent of the addition in total external debt during the year was put on exchange rate difference connected to major international currencies and a weakening US dollar.
In terms of rupees, India's external debt at end-March 2007 stood at Rs. 675,857 crore (Rs 6,758.57 billion. Component-wise, as much as 56 per cent of the increase was accounted for by commercial borrowings.
The information was part of report released today by the finance ministry's Department of Economic Affairs. The report was titled: 'India's External Debt: A Status Report.'
While the total external debt stock rose during the year, the movement in critical external debt indicators showed a mixed trend.
Debt service ratio showed a perceptible improvement, declining from 9.9 per cent during 2005-06 to 4.8 per cent during 2006-07. Besides, the foreign exchange reserves accounted for a cover of as much as 129 per cent to total external debt stock.
However, other indicators, such as debt to GDP ratio rose, though marginally, to 16.4 per cent, short-term debt to GDP ratio to 1.3 per cent, short-term debt to total debt to 7.7 per cent, and short-term debt to foreign exchange assets to 6.2 per cent.
According to the latest Global Development Finance, 2007 of the World Bank, which contains data for 2005, the ratio of external debt to Gross National Income was the second lowest for India after that for China.
The present volume of the Status Report, the thirteenth in the series, presents developments in India's external debt during 2006-07 and provides the picture of the country's external debt position since 1990.
Besides containing an analysis and presentation of India's external debt, the Report also carries an international comparison of India's external debt position vis-à-vis other indebted developing countries.