India's external debt rose by 1. 8 percent in the third quarter over the previous quarter of the year, according to a report released here on Friday by the Indian Ministry of Finance.

The country's total external debt rose by 2.2 billion U.S. dollars to 124.3 billion U.S. dollars at the end of September from the second three months of the year.

However, as compared to end-March, the stock of external debt at end-September showed a smaller rise of 0.9 percent or 1.05 billion U.S. dollars.

Both long-term and short-term debt contributed almost equal amount to the increase in debt stock.

Long-term debt outstanding stood at 116 billion U.S. dollars at end-September, showing a rise of 1.2 billion U.S. dollars over the quarter entirely due to increase in external commercial borrowings.

Short-term debt increased by 14.1 percent over the quarter to 8. 3 billion U.S. dollars at end-September on account of a rise in trade credits.

Increase in trade credits was due to higher oil and non-oil imports during the current fiscal year so far. In terms of their share in total debt stock, multilateral debt constituted 25.3 percent of the total debt at end September.

Non-Resident deposits, commercial borrowings, export credit and rupee debt added to it.

The share of short-term debt was 6.7 percent. India's foreign exchange reserves including foreign currency assets of the Reserve Bank of India (RBI), gold, SDRs and Reserve Tranche Position in the International Monetary Fund were 143.1 billion U.S. dollars as at the end of September.

Foreign currency assets of the RBI amounted to 136.9 billion US dollars, providing a cover of around 110 percent to total external debt.

There is no significant change in the currency composition of India's external debt over the quarter.

The U.S. dollar continued to be the major currency in India's external debt basket with the share of 45.9 percent at end- September 2005.

Source: Xinhua