India’s External Debt as at the end of March 2023

By IASbook Team September 25, 2023 Educational Resources 0 Comments

On June 30, 2023, the Reserve Bank of India has published the quarterly data of external debt of India art the end of March 2023.

At end March 2023, India’s external debt was placed at US$ 624,7 billion, recording an increase of USS 5.6 billion over its level at end-March 2022.
The external debt to GDP ratio declined to 18.9 per cent at end-March 2023 from 20.0 per cent at end- March 2022.
At end-March 2023, long-term debt (with original maturity of above one year) was placed at US$ 496.3 billion, recording a decline of US$ 1.1 billion over its level at end-March 2022.
The share of short-term debt (with original maturity of up to one year) in total external debt increased to 20.6 per cent at end March 2023 from 19.7 per cent at end-March 2022.
- Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves increased to 22.2 per cent at end-March 2023 (20.0 per cent at end-March 2002).

US dollar denominated debt remained the largest component of India’s external debt, with a share of 54.6 per cent at end-March 2023, followed by debt denominated in the Indian rupee (29.8 per cent), SDR (6.1 per cent), yen (5.7 per cent), and the euro 0.2 per cent).
The share of outstanding debt of non-financial corporations in toral external debt was the highest at 38.9 per cent, followed by deposit-taking corporations (except the central bank) (25.7 per cent), general government (21.3 per cent) and other financial corporations (9.3 per cent).
Loans remained the largest component of external debt, with a share of 32.5 per cent, followed by currency and deposits (22.6 per cent), trade credit and advances (19.9 per cent) and debt securities (16.7 per cent).