Foreign reserves available with India were not enough to counterbalance the increase in the external debt by 17.2%, amounting to $305.9 billion in March 2011. The external debt recorded in the previous financial year, which ended in March 2010, amounted to $261.0 billion.

India’s External Commercial Borrowings share of the external debt increased from 19.2% in 2005 to 28.9% in the year 2011. The total long-term external debt for the year amounted to $240.9 billion that is an increase by 15.4% from the amount of $208.7 billion recorded in the year 2010.

On the other hand, the short-term debts increased by 24.2% amounting to $65.0 billion from $52.3 billion in the year 2010. The US dollar was at an increase by 53.2% in accordance to the external debt, followed by Indian rupee at 19.5 % and Japanese currency yen at 11.4% and the special drawings were recorded at 9.7%.

As per DK Joshi, Chief Economist, CRISIL, "The fall in reserves to external debt ratio is not a surprise at all as private borrowing have increased rapidly. However, payments will not be a problem for us as we are not in a danger zone”.

Despite of the increase in the external debt, India was able to maintain its position at number 4 in comparison to many other developed countries.