External debt up at US$142.7bn

India's external debt increased to US$142.7bn as of December 31, 2006 as companies stepped up their overseas borrowings amid rising local interest rates. India had an external debt of US$136.5bn by the end of September, data released on Friday by the Finance Ministry showed.

Total external debt as at December 2006 was up 12.8% over the period ended March 2006 when it stood at US$126.41bn.

The rise in external debt at the end of December 2006 was due to an increase in multilateral debt, External Commercial Borrowings (ECBs) and NRI deposits, offset by a marginal decline in short-term debt, the Finance Ministry said.