MUMBAI, 27 JUNE: India’s external debt rose by nearly 13 per cent to $390 billion in 2012-13, mainly due to rise in short-term trade credit and external commercial borrowings (ECBs) in the back of high current account deficit, the Reserve Bank said today.
“The high current account deficit witnessed during 2012-13 and it’s financing increasingly through debt flows particularly by trade credit resulted in significant rise in India’s external debt during 2012-13,” the RBI said in a release.
The increase in the debt during 2012-13 was primarily on account of rise in short-term trade credit. There has been sizeable rise in ECBs and rupee denominated non-resident Indian deposits as well, it said. pti