Ninth heavily debted nation

NEW DELHI, FEB. 23. India figures among the top ten heavily- debted countries, but the Economic Survey says it is not a cause of concern now as its indebtedness has improved to 20.7 per cent of the gross domestic product (GDP) so far during the current fiscal from 21.9 per cent last year.

The total debt, both short term and long term, stood at $97.86 billions in the 2000-01, compared to $98.44 billions in 1999- 2000, the Economic Survey 2000-01, released by the Government, said today.

As per the international comparison of top 15 debtor countries done by World Bank, India stood at the ninth position during December 1998 and was categorised as ``moderate'' indebted country.

The survey, however said the present economic policies of high export growth, restricting short-term debt and encouraging non- debt creating flows, would make India a less- indebted country in the near future.

While the long-term debt declined to $93.36 billions in the current financial year so far from $94.40 billions, the short- term debt increased to $4.50 billions in 2000-01 from $4.04 billions last year.

Despite international shocks such as Asian currency and oil price, India exhibited its strong economic fundamentals in the international market by raising external debt through resurgent India bonds (RIBs) in 1998-99 and the more recent India millennium deposits (IMDs) in 2000-01.

``This would have medium-term implications for the country's external debt and debt service payment obligations. Nevertheless, the raising of substantial amounts through these schemes was a solid proof of NRIs' confidence in Indian economy,'' the survey said.

- PTI

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