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India’s External Debt As At The End Of March 2017

As per the standard practice, India's external debt statistics for the quarters ending March and June are released by the Reserve Bank of India with a lag of one quarter and those for the quarters ending September and December by the Ministry of Finance, Government of India. The external debt data as at end-March 2017 in rupees and US dollars as well as revised data for earlier quarters are set out in Statements 1 and 2, respectively. The major developments relating to India’s external debt as at end-March 2017 are presented below.

Highlights
At end-March 2017, India’s external debt witnessed a decline of 2.7 per cent over its level at end-March 2016, primarily on account of a decline in Non-resident Indian (NRI) deposits and commercial borrowings. The decline in the magnitude of external debt was partly due to valuation loss resulting from the depreciation of the US dollar vis-à-vis the Indian rupee.

The external debt to GDP ratio stood at 20.2 per cent as at end-March 2017, lower than its level of 23.5 per cent at end-March 2016.

Major highlights pertaining to India’s external debt as at end-March 2017 are presented below:


  • At end-March 2017, India’s external debt was placed at US$ 471.9 billion, recording a decline of US$ 13.1 billion over its level at end-March 2016 (Table 1).
  • Valuation loss due to depreciation of the US dollar vis-à-vis the Indian rupee was placed at US$ 1.5 billion. Excluding the valuation effect, the decline in external debt would have been US$ 14.6 billion instead of US$ 13.1 billion as at end-March 2017 over the level at end-March 2016.
  • Commercial borrowings continued to be the largest component of external debt with a share of 36.7 per cent, followed by NRI deposits (24.8 per cent) and short-term trade credit (18.3 per cent).
  • At end-March 2017, long-term debt was placed at US$ 383.9 billion, recording a decline of US$ 17.7 billion over its level at end-March 2016.
  • The share of long-term debt in total external debt as at end-March 2017 was 81.4 per cent, lower than 82.8 per cent at end-March 2016.
  • The share of short-term debt (original maturity) in total external debt increased to 18.6 per cent at end-March 2017 from 17.2 per cent at end-March 2016. The ratio of short-term debt (original maturity) to foreign exchange reserves increased to 23.8 per cent as at end-March 2017 (23.1 per cent at end-March 2016).
  • On a residual maturity basis, short-term debt constituted 41.5 per cent of total external debt at end-March 2017 (42.7 per cent at end-March 2016) and stood at 52.9 per cent of total foreign exchange reserves (57.4 per cent at end-March 2016) (Table 2).
  • US dollar denominated debt continued to be the largest component of India’s external debt with a share of 52.1 per cent as at end-March 2017, followed by the Indian rupee (33.6 per cent), SDR (5.8 per cent), Japanese yen (4.6 per cent) and Euro (2.9 per cent).
  • The borrower classification shows that the outstanding debt of the Government increased; however, non-Government debt declined at end-March 2017 (Table 3).
  • Debt service payments declined to 8.3 per cent of current receipts as at end-March 2017 as compared with 8.9 per cent at end-March 2016 (Table 4).



TABLES 1, 2, 3 & 4 ARE AVAILABLE HERE - LINK

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