Steps to Reduce External Debt

December 02, 2011 India™s external debt stock stood at US$ 316.9 billion at end-June 2011.

The increase in external debt to US$ 316.9 billion at end-June 2011 from US$ 306.5 billion at end-March 2011 was largely on account of rise in commercial borrowings and short-term trade credits. Out of the total external debt of US$ 316.9 billion, long term external debt stood at US$ 248.4 billion while short term external debt accounted for US$ 68.5 billion.

The prudent external debt management policy followed by the Government of India emphasizes monitoring of long and short term debt, raising sovereign loans on concessional terms with long maturities, regulating external commercial borrowings through end-use and all-in-cost restrictions and rationalizing interest rates on Non-Resident India (NRI) Deposits. As a result, the external debt on GDP ratio has declined from 21.1 per cent in 2001-02 and to 17.3 per cent in 2010-11

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Lok Sabha today.

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