Mumbai: India’s external debt increased 3% 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 (gross domestic product) ratio stood at 20.3% as at June-end 2017, a shade higher than its level of 20.2% 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 USD 1.72 billion. Excluding the valuation effect, the increase in external debt would have been around USD 12.24 billion instead of USD 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%, followed by NRI deposits (24.3%) and short term trade credit (17.9%). The share of short-term debt (original maturity) in total external debt decreased to 18.3% at June-end 2017 from 18.6% 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 finance ministry.