Total foreign debt for India increased by 28.5 billion dollars to touch $155 billion during financial year 2006-07. This is an increase of nearly 23 per cent. The US dollar was weak compared to other international currencies and 10 % of rise can be attributed to weak dollar.

The figures stood at 126.5 billion dollars during the last year.

The finance ministry issued the report 'India's External Debt: A Status Report'. As per the report, "Almost 10 per cent of the addition in total external debt ($28.5 billion) during the year was ascribed to a valuation change as a result of the weakening US dollar vis-a-vis other major international currencies."

The external debt accounts for nearly 16.4% of Gross Domestic Product (GDP) of India. Current foreign exchange reserves of India stood at one and half times its total external debt.

As per the report from finance ministry, more than half of the increase in foreign debt was from borrowing by Indian companies. Indian companies raised money from overseas sources as the rate of interest was lower. Many Indian companies have acquired stake in foreign companies and the money was raised from overseas sources in many cases.

Other major factors for the rise were NRI deposits, short term debts and multilateral debts.