At end-September 2010, India's external debt stock was US$ 295.8 billion reflecting an increase of 12.8 per cent over the level of US$ 262.3 billion at end-March 2010. The long-term debt increased by 9.5 per cent to US$ 229.8 billion, while short-term debt showed an increase of 25.8 per cent to US$ 66.0 billion. 

Of the total increase of US$ 33.5 billion in India's external debt at end-September 2010, the valuation effect arising from depreciation of the US dollar against major international currencies accounted for US$ 6.3 billion (18.8 per cent). Excluding the valuation effect, the increase in external debt would have been US$ 27.2 billion. 

Short-term debt accounted for 22.3 per cent of India's total external debt while the rest 77.7 per cent was long-term debt. Component-wise, the share of commercial borrowings stood highest at 27.8 per cent followed by NRI deposits (16.9 per cent) and multilateral debt (15.8 per cent). 

Government (Sovereign) external debt was US$ 72.3 billion (24.4 per cent of total external debt) at end-September 2010 as against US$ 67.1 billion (25.6 per cent) at end-March 2010. 

The share of US dollar denominated debt was the highest in external debt stock at 53.9 per cent at end-September 2010, followed by the Indian rupee (18.8 per cent), Japanese Yen (11.8 per cent), SDR (9.8 per cent) and Euro (3.6 per cent). 

The ratio of short-term external debt to foreign exchange reserves was 22.5 per cent at end-September 2010 as compared to 18.8 per cent at end-March 2010. 

The Department of Economic Affairs, Ministry of Finance has been compiling and releasing quarterly statistics on India's External Debt for the quarters ending September and December every year. This press release relates to India's external debt at end-September 2010. 

The complete quarterly report of India's external debt at end-September 2010 is available on the website of Ministry of Finance - www.finmin.nic.in.  External debt rise highlights greater short-term liabilities and reduced reserve coverage for short-term obligations. India's external debt stock increased by end-September 2010 with faster growth in short-term debt relative to long-term debt; a valuation effect from currency movements accounted for part of the increase. Commercial borrowings, non-resident deposits and multilateral liabilities were the principal components, sovereign external debt remained significant, and US dollar denominated instruments formed the largest currency share. The ratio of short-term external debt to foreign exchange reserves rose. Quarterly external debt statistics are compiled and published by the Department of Economic Affairs.