Non-debt liabilities move up on fund flows

In %

Non-Debt

Debt

Jun '06

42.26

57.74

Dec '06

44.91

55.09

Jun '07

47.78

52.22

Sep '07

49.02

50.98

Dec '07P

50.75

49.25

P: Provisional

Regarding external financial liabilities, RBI said the portfolio investments, mainly in equity and equity-related instruments, and direct investments in India increased by $16.08 billion at end-December 2007.  Further, external commercial loans and trade credits increased by $6.24 billion and $3.78 billion respectively during the same period.  The major part of India's external financial assets was in the form of reserve assets, constituting around 83.0 per cent. This was followed by direct investment and other investment, accounting for 11.7 per cent and 5.1 per cent respectively, RBI said.  Country's external financial liabilities at end of December 2007 were composed of items like trade credits, loans, deposits besides direct and portfolio investments. Other investments consisting trade credits, loans, currency & deposits and liabilities had 44 per cent share in liabilities. The portfolio investment at 30.7 per cent and Direct Investment at 25.2 per cent were crucial elements in liabilities.  The loan' and