India’s external debt rose by almost 13 per cent to $390 billion at the end of March 2013, higher than $345.5 billion a year earlier. This according to an official statement is mainly due to an increase in short-term trade credit and external commercial borrowings amid a high current account deficit.
The International Debt Statistics 2013 of the World Bank, which contains data for 2011, shows India in fourth position in terms of absolute debt stock among the top 20 developing debtor countries. However, in terms of the ratio of external debt to Gross National Income, India's position was the third-lowest, though it added that the external debt has remained within manageable limits, as indicated by the external debt-GDP ratio of 21.2 per cent in the last year.
But the important point that now must be questioned; where the increased level of debt at present will stand at the end of this fiscal ? And where will be $ denominated debt's ratio will stand in the end, when the rupee is already depreciated by more then one fifth in the middle of this fiscal ?
Will not the ratio over shoot hereafter remain manageable level of 21 %, when the GDP growth is fast declining,simultaneously the CAD, fiscal deficit, annual subsidy bills and inflation are fast touching the roof ? Will it be still manageable ?
Do Indian Government have a clear visionary road map for the situation fast unfolding ? Will they issue a White Paper or Status Report on the currency related economic health of the country, that may be essential for the knowledge of the people as well for the restoration of the lost confidence of investors ? Don't you understand and accept that any Economy needs a clear picture away from the haze or suspicion, for its time bound future planning and actions ?