India’s external debt increased by 6.6% during the FY ending March 2015 to $475.8 billion, this rise took place mainly due to higher NRI deposits and commercial borrowing and also because the appreciation of US dollar against Indian rupee and other major currencies. The ratio of GDP against the external debt increased up to 23.8% by the end of March 2015 from the level of 23.6 % the last year (March 2014).
The short term debt by the original maturity at $ 84.7 billion accounted 17.8% of the overall external debt at March end 2015 to that of 20.5 % at March 2014.Simultaneously, the country’s ratio of short term debt on residual maturity accounted for 38.9%, as compared to the previous year of 39.6 %.
Similarly, the ratio for short term residual debt to foreign exchange reserves worked out to be 54.2% at end March 2015, from 57.4% last year. There was an increase in the outstanding debt of Government and non government sectors, their shares in the external debt were 18.9% and 81.1%, respectively at end-March 2015. The debt payments during 2014-15 were higher relative to the preceding year due to the higher repayments of External Commercial Borrowings (ECBs) during the year.