Mumbai: Reserve Bank of India (RBI) today (Sep 30, 2004) said, India's total external debt grew marginally by $ 121 million to $ 112.6 billion by June end over the March end 2004 level while the country's international investment position (InIP) improved significantly due to depreciation of the USD.

Releasing the external debt position and the InIP as on end June and end March 2004 respectively, RBI said the external debt stood at $ 112.6 bn as of end June 2004.

The ratio of reserves to total debt improved to 106.1 per cent as on June end from 100.4 per cent in March end 2004.

Forex reserves exceeded the external debt by $ 6.9 bn, providing a cover of 106.1 per cent to the external debt.

The stock of external debt would have increased by about $ 2 bn, but for the valuation effects on account of the appreciation of the dollar, which continued to dominate the currency composition of India's external debt, against other major international currencies.

RBI said measured in Rupee terms, the external debt rose by 5.9 per cent during April-June 2004.

The surge in imports during the first quarter of oil and non-oil products led to highest expansion of short- term debt, which was $ 5.9 bn as on June end 2004 over $ 4.7 bn as on March 2004.

The central bank said, that the share of multilateral debt was up by $ 91 mn to $ 29.7 bn and external commercial borrowings grew by $ 153 mn to $ 22.3 bn.

The other components like bilateral credit declined by $ 340 mn to $ 17.14 bn.

NRI deposits (long term) showed a decline of $ 431 mn to $ 30.78 bn.