Mumbai, June 25 (SocialNews.XYZ) India's external debt to GDP ratio declined to 18.7 per cent at end-March 2024 from 19.0 per cent at end-March 2023, reflecting a strengthening of the country's macroeconomic fundamentals.
Although in absolute terms at the end-March 2024, India's external debt stood at $663.8 billion, an increase of $39.7 billion over its level at end-March 2023 there was also an increase in the country's GDP due to the high economic growth. This resulted in a decline in the debt to GDP ratio.
The RBI data also shows:
Excluding the valuation effect, external debt would have increased by $48.4 billion instead of $39.7 billion at end-March 2024 over end-March 2023.
Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves declined to 19 per cent at end-March 2024 (22.2 per cent at end-March 2023).
US dollar-denominated debt remained the largest component of India's external debt, with a share of 53.8 per cent at end-March 2024, followed by debt denominated in the Indian rupee (31.5 per cent), yen (5.8 per cent), SDR (5.4 per cent), and euro (2.8 per cent).
Outstanding debt of both government and non-government sectors increased at end-March 2024 over the level a year ago.
The share of outstanding debt of non-financial corporations in total external debt was the highest at 37.4 per cent
Loans remained the largest component of external debt, with a share of 33.4 per cent, followed by currency and deposits (23.3 per cent), trade credit and advances (17.9 per cent) and debt securities (17.3 per cent).
Debt service (i.e., principal repayments and interest payments) increased to 6.7 per cent of current receipts at end-March 2024 from 5.3 per cent at end-March 2023, reflecting higher debt service.
Source: IANS
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