At end-June 2024, India’s external debt was placed at US$ 682.3 billion, an increase of US$ 13.3 billion over its level at end-March 2024, according to an update from RBI.
The external debt to GDP ratio was 18.8 per cent at end-June 2024 as compared with 18.9 per cent at end-March 2024.
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Valuation effect due to the appreciation of the US dollar vis-?-vis the Indian rupee and other major currencies such as yen, the euro and SDR2 amounted to US$ 3.0 billion during the quarter ended June 2024. Excluding the valuation effect, external debt would have increased by US$ 16.3 billion instead of US$ 13.3 billion at end-June 2024 over end-March 2024.
At end-June 2024, long-term debt (with original maturity of above one year) was placed at US$ 549.6 billion, recording an increase of 1.5 percent (US$ 8.2 billion) over its level at end-March 2024.
The share of short-term debt (with original maturity of up to one year) in total external debt increased to 19.4 per cent at end-June 2024 from 19.1 per cent at end-March 2024. The ratio of short-term debt (original maturity) to foreign exchange reserves increased to 20.3 per cent at end-June 2024 (19.7 per cent at end-March 2024).
Short-term debt on residual maturity basis (i.e., debt obligations that include long-term debt by original maturity falling due over the next twelve months and short-term debt by original maturity) constituted 44.0 per cent of total external debt at end-June 2024 (43.4 per cent at end-March 2024) and stood at 46.0 per cent of foreign exchange reserves (44.9 per cent at end-March 2024).
US dollar-denominated debt remained the largest component of India’s external debt, with a share of 54.6 per cent at end-June 2024, followed by debt denominated in the Indian rupee (31.2 per cent), yen (5.4 per cent), SDR (5.1 per cent), and euro (2.9 per cent).
Outstanding debt of both government and non-government sectors increased at end-June 2024 over its level at end-March 2024.
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First Published: Oct 03 2024 | 3:12 PM IST
