India short term debt of $172 billion expires in March-14

• Country will have to pay back $172 billion by March 31, 2014.
• CAD has increased from 2.5 percent in 2008-09 to nearly 5 per cent in 2012-13. Thisnis because of high debt moped up by corporates.
• Short-term debt maturing within a year is nearly 60 per cent of India’s total foreign exchange reserves.
• Repaying debt at a depreciated exchange rate of the rupee will be a huge challenge for the corporates
• With Fed tightening the QE program, we could see a liquidity crunch and huge depreciation of rupee.
• But the govt will take lot of steps to increase the info which will help tackling this deficit.