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Debt has become a scary word these days. The problems it has brought about in US and Euro zone are not really news to anyone. The latter is still struggling to crawl its way out of the trap. The former is doing no better. Till now India has not really worried about it. But a recent report released by the Reserve Bank of India (RBI) has given us every reason to be worried. This report states that the quantum of debt (at the end of March 31, 2012) maturing within a period of 1 year stands at almost half of the country's total foreign exchange reserves. The scarier part is that this percentage has doubled since 2008. Though most of the constituents of this short term debt are those that are usually rolled over, considering the current time of economic uncertainty and risk, it is not possible to be too sure that this would happen. There could be some defaults if not all.
Source: LiveMint
* As on 31st March each year
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