Net foreign debt flows shrink to $1.5 billion

“The Centre has been following prudent external debt management policies to manage external debt flows, consistent with overall macroeconomic requirements and to keep the external debt level within manageable limits,” Meena said.

Net foreign debt flows include net receipts on account of External Assistance, External Commercial Borrowings, deposits of Non Resident Indians, short-term trade credits and rupee debt service, he said quoting RBI.

The amount of net foreign debt flows in 2006-07 was US$ 26,341 million, which more than doubled to US$ 53,566 million in 2007-08. It, however, shrunk to US$ 1,503 million in the previous fiscal during which the economy faced severe slowdown due to the global financial crisis. On the “prudent” policies, he said, “These policies include raising loans with longer maturities, regulating the levels of commercial borrowings and their end-use, rationalising interest rates on NRI deposits, monitoring long and short-term debt and encouraging non-debt creating capital flows.