India’s external debt rises to $273.1 b.

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Mumbai: India’s external debt rose 4.1 percent or $10.8 billion to $273.1 billion in the first quarter of current fiscal due to a sharp increase in short-term trade credits, commercial borrowings and multilateral government borrowings.

The short-term debt increased by $5.4 billion to $57.8 billion, accounting for 21.2 percent of the total debt, while the long-term debt rose to $215.2 billion at the quarter ended June 30, the Reserve Bank of India (RBI) said in its monthly bulletin.

Almost all the components of external debt registered increase during the first three months of fiscal 2010-11. Commercial borrowings and loans under external assistance (multilateral and bilateral debt) increased by $2.5 billion and $2.3 billion respectively.

The share of commercial borrowings continues to be the highest at 27.3 percent in the total external debt followed by short-term debt (21.2 percent), NRI deposits (17.6 percent) and multilateral debt (16.4 percent).

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