India’s External Debt at about US$ 450 billion
India’s External Debt at about US$ 450 billion With a modest level of current account deficit (CAD) and sharp rise in non-debt creating flows in Q1 of 2014-15, India’s external debt stands at US$ 450 billion at the end of June 2014, which has increased marginally by 1.8% over end-March 2014. Of the total absolute increase of US$ 7.9 billion in total external debt, a marginal increase of about US$ 0.4 billion during the quarter was on account of valuation change, reflecting a marginal depreciation of the US dollar against the Indian rupee and other major currencies. The increase in total external debt was primarily on account of rise in commercial borrowings by US$ 6.3 billion over end-March 2014. Outstanding NRI deposits with a rise of US$ 2.4 billion over end-March 2014 were the second largest source of increase in India’s external debt. In terms of major components, the share of commercial borrowings continued to be the highest at 34.2% of total external debt, followed by NRI depo...