BackIndia's external debt rises to $629.1 billion at end-June 2023
The Reserve bank of India (RBI) Thursday released the external debt data of India which rose marginally to USD 629.1 billion at June-end 2023, although the debt-GDP ratio declined to 18.6%.
PremiumThe Reserve bank of India (RBI) Thursday released the external debt data of India which rose marginally to USD 629.1 billion at June-end 2023, although the debt-GDP ratio declined to 18.6%.
The external debt recorded an increase of USD 4.7 billion over USD 624.3 billion at end-March 2023, the RBI data said.
“The external debt to GDP ratio declined to 18.6% at end-June 2023 from 18.8% at end-March 2023," the Reserve bank said.
Valuation effect due to the appreciation of the US dollar vis-à-vis the major currencies such as yen and SDR2 amounted to USD3.1 billion. Excluding the valuation effect, external debt would have increased by USD 7.8 billion instead of USD 4.7 billion at end-June 2023 over end-March 2023.
US dollar-denominated debt remained the largest component of India’s external debt, with a share of 54.4% at end-June 2023, followed by debt denominated in the Indian rupee (30.4%), SDR (5.9%), yen (5.7%), and the euro (3.0%).
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
At end-June 2023, long-term debt (with original maturity of above one year) was placed at USD 505.5 billion, recording an increase of USD 9.6 billion over its level at end-March 2023, the report said.
The share of short-term debt (with original maturity of up to one year) in total external debt declined to 19.6% at end-June 2023 from 20.6% at end-March 2023. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves declined to 20.8% at end-June 2023 (22.2% at end-March 2023).
The RBI report further said the outstanding debt of the general government decreased, while non-government debt increased at end-June 2023.
The share of outstanding debt of non-financial corporations in total external debt was the highest at 39.8%, followed by deposit-taking corporations (except the central bank) (26.6%), general government (21.1 %) and other financial corporations (7.6%), the report added.
Loans remained the largest component of external debt, with a share of 32.9%, followed by currency and deposits (22.9%), trade credit and advances (19.0%) and debt securities (16.8$)
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
