BackIndia’s external debt at $426 billion in Dec
The long-term debt was $333.3 billion at the end of Dec 2013, showing an increase of 8.1% over Mar 2013 level
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New Delhi: India’s external debt was at $426 billion—including the government’s debt of $76.4 billion—at the end of December 2013.
“Government (sovereign) external debt stood at $76.4 billion, (17.9% of total external debt) at end-December 2013 as against $81.7 billion (20.2%) at end-March 2013," the finance ministry said on Friday.
The total external debt of $426 billion showed an increase of $21.1 billion over the March-end level.
“The rise in external debt during the period was due to long-term debt particularly NRI deposits. A sharp increase in NRI deposits reflected the impact of fresh FCNR(B) deposits mobilised under the swap scheme during September-November 2013," it said in the latest quarterly report.
The ministry further said that the long-term debt was $333.3 billion at the end of December 2013, showing an increase of 8.1% over March 2013 level, while short-term debt declined by 4.1% to $92.7 billion.
“The share of US dollar denominated debt was the highest in external debt stock and stood at 63.6% at end-December 2013, followed by debt denominated in Indian rupee (19.4%), SDR (7.1%), Japanese yen (5%) and euro (3.1%)," it added.
India’s foreign exchange reserves provided 69% cover to the total external debt as of December end, as against 72.1% as of March-end 2013.
The ministry said the debt has remained within manageable limits as indicated by the external debt to GDP ratio of 23.3%, vis-a-vis 21.8% at end-March 2013, and debt service ratio of 5.9% in 2012-13.
“India’s external debt has remained within manageable limits due to prudent external debt management policy of the government of India," it said.
The policy continues to focus on monitoring long and short-term debt, raising sovereign loans on concessional terms with longer maturities, regulating external commercial borrowings through end-use, all-in-cost and maturity restrictions, and rationalising interest rates on non-resident Indian deposits, it added. PTI
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