India’s external debt rose by USD 11.5 billion to USD 614.9 billion within the three months ended December 2021, the finance ministry stated on Thursday.
The external debt to GDP ratio fell marginally to 20 per cent at the end of December final yr from 20.3 per cent at the end of September 2021.
According to India’s Quarterly External Debt Report for quarter ended December 2021, the nation’s external debt was positioned at USD 614.9 billion, recording a rise of USD 11.5 billion over its degree at the end of September 2021.
“India’s external debt continues to be sustainable and prudently managed,” it stated.
Valuation achieve due to the appreciation of the US greenback vis-a-vis main currencies resembling Euro, Yen and Special Drawing Rights (SDRs) was positioned at USD 1.7 billion.
“Excluding the valuation impact, the rise in external debt would have been USD 13.2 billion as a substitute of a rise of USD 11.5 billion at end-December 2021 over end- September 2021,” it stated.
Commercial borrowings remained the most important element of external debt, with a share of 36.8 per cent, adopted by non-resident deposits (23.1 per cent) and short-term commerce credit score.
At the end of December 2021, long-term debt, with unique maturity of above one yr, was positioned at USD 500.3 billion, recording a rise of USD 1.7 billion over its degree at the end of September 2021.
The share of short-term debt, with unique maturity of up to one yr, in complete external debt elevated to 18.6 per cent at the end of December 2021 from 17.4 per cent at end-September 2021.
US greenback denominated debt remained the most important element of India’s external debt, with a share of 52 per cent at end-December 2021, adopted by the Indian rupee (32 per cent), SDR (6.7 per cent), Yen (5.3 per cent), and the Euro (3.1 per cent).
“The borrower-wise classification exhibits that the excellent external debt of authorities marginally declined whereas that of non-government sector elevated as at end-December 2021 over the earlier quarter,” the report stated.
Also, debt service (principal repayments plus curiosity funds) elevated to 4.9 per cent of present receipts at end-December 2021 from 4.7 per cent at end-September 2021.
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