§ Mr. CoxTo ask the Secretary of State for International Development how much the Indian Government owe to(a) the UK and (b) other European Union countries; and what action her Department is taking to press for the cancellation of this debt. [149462]
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§ Clare ShortAccording to the Government of India's most recent published data, in 1999 their official debt to the UK was 167.9 million rupees (£2.5 million at the present exchange rate), while their official debt to the European Union wits 212.53 billion rupees (£3.16 billion).
The UK supports and advocates debt relief for Heavily Indebted Poor Countries which are undertaking pro-poor economic reforms. But Indias external debt position is moderate, with a debt-service ratio of 16 per cent. (as of March 2000), and large-scale international reserves (estimated at US$ 40 billion). We are not therefore pressing for cancellation of Indias debt. However our development assistance in India includes substantial support to help the Indian Government reform and improve their fiscal management, particularly at the State level where fiscal deficits are high.