India's external debt has risen by $6.2 billion to $142.7 billion at the end of December 2006 on account of the surge in corporate borrowings in foreign countries and deposits by non-resident Indians.
According to the figures released by the finance ministry on Friday, the country's debt increased from $136.5 billion (Rs 627,112 crore) at the end of September 2006 to $142.7 billion (Rs 632,051 crore) as on December 31, 2006.
Despite appreciation of rupee, commercial borrowings by India Inc have gone up by 11 per cent from Rs 32,421 crore in September-end 2006 to Rs 35,980 crore by December-end 2006.
Analysts said with interest rates continuing to rise in the domestic market, companies are still finding it cheaper to borrow from abroad.
During the current financial year, the government has put a ceiling of 22 billion dollars on external commercial borrowings (ECBs), while for cap on an individual company is $500 million.
Long-term debt outstanding increased over the quarter by $6.798 billion to $132.641 billion, while short-term debt declined by $610 million (5.7 per cent) to $10.015 billion as on December-end 2006.
With interest rate in the country firming up, deposits by Non-Resident Indians have also gone up by Rs 1,867 crore (5.1 per cent) to Rs 38,382 crore at December-end 2006.
During the period, multilateral debt rose by $975 million. Export credit outstanding increased by $299 million and bilateral debt by $36 million.
Source : Rediff
According to the figures released by the finance ministry on Friday, the country's debt increased from $136.5 billion (Rs 627,112 crore) at the end of September 2006 to $142.7 billion (Rs 632,051 crore) as on December 31, 2006.
Despite appreciation of rupee, commercial borrowings by India Inc have gone up by 11 per cent from Rs 32,421 crore in September-end 2006 to Rs 35,980 crore by December-end 2006.
Analysts said with interest rates continuing to rise in the domestic market, companies are still finding it cheaper to borrow from abroad.
During the current financial year, the government has put a ceiling of 22 billion dollars on external commercial borrowings (ECBs), while for cap on an individual company is $500 million.
Long-term debt outstanding increased over the quarter by $6.798 billion to $132.641 billion, while short-term debt declined by $610 million (5.7 per cent) to $10.015 billion as on December-end 2006.
With interest rate in the country firming up, deposits by Non-Resident Indians have also gone up by Rs 1,867 crore (5.1 per cent) to Rs 38,382 crore at December-end 2006.
During the period, multilateral debt rose by $975 million. Export credit outstanding increased by $299 million and bilateral debt by $36 million.
Source : Rediff