India's external debt rises from $10.6 billion to $485.6 billion

India's external debt stood at $485.6 billion at the end of March 2016, recording an increase of $10.6 billion year-on-year, primarily on account of a rise in outstanding NRI deposits, the RBI said on Thursday.

The increase in the magnitude of external debt was partly offset by valuation gain resulting from the appreciation of the US dollar vis-a-vis the Indian rupee and other major currencies, the central bank said in a statement. The external debt to GDP ratio stood at 23.7 % at end-March 2016, a shade lower than its level of 23.8 % at end-March 2015, it added.

RBI said on residual maturity basis, short-term debt constituted about 42.6 % of total external debt at end-March 2016 compared with 38.2 % at end-March 2015. As per RBI data, share of commercial borrowings continued to be the largest component of external debt with a share of 37.3 %, followed by NRI deposits (26.1 %) and short-term trade credit (16.5 %).

The ratio of short-term debt (original maturity) to foreign exchange reserves declined 23.1 % as at end-March 2016 compared to 25.0 % as at end-March 2015. Debt service payments increased to 8.8 % of current receipts at end-March 2016 as compared to 7.6 % at end-March 2015, RBI said.

Meanwhile, with a view to rationalising and expediting the process of giving approval, the central bank said it has been decided that ECB proposals received in the RBI above a certain threshold limit (refixed from time to time) be placed before the Empowered Committee.

"Reserve Bank will take a final decision in the cases taking into account the recommendation of the Empowered Committee," it said.