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<h1>External debt rose by year-end, led by long-term borrowing and valuation effects, shifting debt composition and currency exposure.</h1> India's external debt stock increased by US$ 36.3 billion to US$ 297.5 billion at end-December 2010, driven by a US$ 26.0 billion rise in long-term debt and a US$ 10.3 billion rise in short-term debt; valuation effects from currency movements contributed US$ 5.3 billion. Short-term debt was 21.0% of total; commercial borrowings, NRI deposits and multilateral debt were principal components. The debt-to-GDP ratio was 16.9%, the debt service ratio 3.9%, and short-term debt equalled 21.1% of foreign exchange reserves.