India’s external debt at $ 571.3 billion at the end of June, up $ 1.6 billion from March (RBI)
India’s external debt stood at $ 571.3 billion at the end of June, registering an increase of $ 1.6 billion from its level at the end of March 2021, the RBI said on Thursday.
However, the ratio of external debt to GDP fell to 20.2% at the end of June 2021, from 21.1% as of March 31.
The gain due to the appreciation of the US dollar against the Indian rupee amounted to 1.7 billion dollars.
“Excluding the valuation effect, the external debt would have increased by 3.3 billion dollars instead of 1.6 billion dollars at the end of June 2021 compared to the end of March 2021”, indicated the central bank.
According to the data, commercial borrowing remained the most important component of external debt, with a share of 37.4 percent, followed by non-resident deposits (24.8 percent) and short-term trade credit. (17.4 percent).
As of June 30, long-term debt (with an original maturity of over one year) stood at $ 468.8 billion, an increase of $ 0.2 billion from its level at the end of March, the central bank said.
The share of short-term debt in total external debt increased slightly to 17.9% at June 30 from 17.7% at the end of March.
However, the ratio of short-term debt (original maturity) to foreign exchange reserves fell to 16.8%, from 17.5% at the end of March 2021.
The Reserve Bank further said that US dollar-denominated debt remained the main component of India’s external debt, with a share of 52.4% at the end of June, followed by the Indian rupee (33.2 %), the yen (5.8%), the SDR (4.4%) and the euro (3.4%).
Classification by instrument shows that loans were the most important component of external debt, with a share of 34.7%, followed by foreign exchange and deposits, trade credits and advances, and debt securities.
In addition, the classification by borrower shows that the stock of public debt decreased while non-public sector debt increased at the end of June 2021.
The RBI also said that debt service (principal repayments plus interest payments) had almost halved to 4.1% of current revenue at the end of June 2021, from 8.2% at the end of March 2021, reflecting lower reimbursements and higher current revenues.
In a separate statement, RBI said net claims of non-residents in India fell to $ 327 billion as of June 2021.
Net claims of non-residents on India decreased by USD 24.3 billion in the April-June 2021-2022 quarter.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
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