India's external debt profile has deteriorated over a period of time with significant rise in volatile capital or hot money and decline in import cover, said a Reserve Bank report.
"The ratio of volatile capital flows (defined to include cumulative portfolio inflows and short-term debt) to the reserves increased from 83.9 per cent as at end-September 2012 to 96.1 per cent as at end-March 2013", said the RBI's half yearly report on management of foreign exchange reserves.
The report further pointed out that the country's foreign exchange reserves at end-March 2013 equalled to the nation's import cover of 7 months, down from 7.2 months at end-September 2012.
The other external debt parameter which relates to the portion of short-term debt in the total debt too showed deterioration.
According to the RBI report, "the ratio of short-term debt to the foreign exchange reserves, which was 28.7 per cent at end-September 2012, increased to 33.1 per cent at end-March 2013".
The country's foreign exchange reserves, it said, stood at $294.8 billion as at end-September 2012. During the half year under review, the reserves came down to $290.9 billion at the end of February 2013 after which it increased to $292.0 billion at the end-March 2013.
India's current account deficit (CAD) touched a record high of 4.8 per cent of the GDP or $88 billion in the last fiscal.
India's external debt profile has deteriorated over a period of time with significant rise in volatile capital or hot money and decline in import cover, said a Reserve Bank report.
"The ratio of volatile capital flows (defined to include cumulative portfolio inflows and short-term debt) to the reserves increased from 83.9 per cent as at end-September 2012 to 96.1 per cent as at end-March 2013", said the RBI's half yearly report on management of foreign exchange reserves.
The report further pointed out that the country's foreign exchange reserves at end-March 2013 equalled to the nation's import cover of 7 months, down from 7.2 months at end-September 2012.
The other external debt parameter which relates to the portion of short-term debt in the total debt too showed deterioration.
According to the RBI report, "the ratio of short-term debt to the foreign exchange reserves, which was 28.7 per cent at end-September 2012, increased to 33.1 per cent at end-March 2013".
The country's foreign exchange reserves, it said, stood at $294.8 billion as at end-September 2012. During the half year under review, the reserves came down to $290.9 billion at the end of February 2013 after which it increased to $292.0 billion at the end-March 2013.
India's current account deficit (CAD) touched a record high of 4.8 per cent of the GDP or $88 billion in the last fiscal.
India's external debt profile has deteriorated over a period of time with significant rise in volatile capital or hot money and decline in import cover, said a Reserve Bank report.
"The ratio of volatile capital flows (defined to include cumulative portfolio inflows and short-term debt) to the reserves increased from 83.9 per cent as at end-September 2012 to 96.1 per cent as at end-March 2013", said the RBI's half yearly report on management of foreign exchange reserves.
The report further pointed out that the country's foreign exchange reserves at end-March 2013 equalled to the nation's import cover of 7 months, down from 7.2 months at end-September 2012.
The other external debt parameter which relates to the portion of short-term debt in the total debt too showed deterioration.
According to the RBI report, "the ratio of short-term debt to the foreign exchange reserves, which was 28.7 per cent at end-September 2012, increased to 33.1 per cent at end-March 2013".
The country's foreign exchange reserves, it said, stood at $294.8 billion as at end-September 2012. During the half year under review, the reserves came down to $290.9 billion at the end of February 2013 after which it increased to $292.0 billion at the end-March 2013.
India's current account deficit (CAD) touched a record high of 4.8 per cent of the GDP or $88 billion in the last fiscal.
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