Mumbai, Oct 01: India's external debt increased by$5 billion (4.8 per cent) at $109.6 billion as on end-June 2003 from $104.6 billion in March 2003. The increase in external debt during the quarter under review (April-June 2003) was mainly on account of increase in NRI deposits ($2.6 bn), external commercial borrowings ($1.1 bn) and short-term trade credit ($0.9 bn), Reserve Bank of India said in a release on Tuesday.

The rise in NRI deposits was mostly on account of an increase in non-resident external (NRE) deposits by $2.7 billion as there was an outflow of $0.1 billion in foreign currency non-resident (bank) deposits, it said.
The increase in NRE deposits includes reinvestment of maturity proceeds of NR(NR)RD scheme (non-resident non-repatriable), which was discontinued with effect from April one, 2002, of around $0.4 billion, the apex bank added.
RBI said increase in external commercial borrowings (ECBs) reflected rise in borrowing by corporates in the face of low international interest rates. The trade credit increase has been the result of sharp rise in India's imports. Bureau Report