<h1>India's External Debt Drops by $29 Billion in 2016, Long-Term Debt Declines, Forex Cover Improves.</h1> India's external debt decreased by $29 billion (6%) to $456.1 billion by end-December 2016 compared to end-March 2016, primarily due to a reduction in long-term debt, particularly in NRI deposits and commercial borrowings. Long-term debt comprised 81.6% of the total, while short-term debt slightly increased to $83.8 billion. The US dollar accounted for 54.7% of the debt. Government debt was 19.6% of the total. Key indicators showed improvement, with foreign exchange cover rising to 78.7%. India's debt indicators remain favorable compared to other developing countries, with a low share of short-term debt.