India’s external debt increased 3 per cent to $485.8 billion at June-end over the previous quarter, mainly due to increase in inflow of foreign portfolio investment into domestic capital market's debt segment. “At end-June 2017, India’s external debt was placed at $485.8 billion, recording an increase of $13.96 billion over its level at end-March 2017,” a RBI data released on Friday said.

The increase in the magnitude of external debt was partly due to valuation loss resulting from the depreciation of the US dollar vis-a-vis the rupee and other major currencies. The external debt to GDP ratio stood at 20.3 per cent as at the June-end 2017, a shade higher than its level of 20.2 per cent at March-end 2017. “Valuation loss due to depreciation of the US dollar vis-a-vis the Indian rupee and other major currencies was placed at $1.72 billion. Excluding the valuation effect, the increase in external debt would have been around $12.24 billion instead of $13.96 billion as at end-June 2017 over the level at end-March 2017,” the central bank said. Commercial borrowings continued to be the largest component of external debt with a share of 37.8 per cent, followed by NRI deposits (24.3 per cent) and short term trade credit (17.9 per cent). The share of short-term debt (original maturity) in total external debt decreased to 18.3 per cent at June-end 2017 from 18.6 per cent at March-end 2017.

India's external debt statistics for the quarters ending March and June are released by the Reserve Bank of India with a lag of one quarter and those for the quarters ending September and December by the Ministry of Finance.