India's external debt rises to $614.9 bn at end of December 2021

AgenciesUpdated:Thursday, March 31, 2022, 04:58 PM IST
article-image
The external debt to GDP ratio fell marginally to 20 per cent at the end of December last year from 20.3 per cent at the end of September 2021. / Representative image |

India's external debt rose by $11.5 billion to $614.9 billion in the three months ended December 2021, the finance ministry said on Thursday.

The external debt to GDP ratio fell marginally to 20 per cent at the end of December last year 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 country's external debt was placed at $614.9 billion, recording an increase of $11.5 billion over its level at the end of September 2021.

''India's external debt continues to be sustainable and prudently managed,'' it said.

Valuation gain due to the appreciation of the US dollar vis-a-vis major currencies such as Euro, Yen and Special Drawing Rights (SDRs) was placed at $1.7 billion.

''Excluding the valuation effect, the increase in external debt would have been $13.2 billion instead of an increase of $11.5 billion at end-December 2021 over end- September 2021,'' it said.

Commercial borrowings remained the largest component of external debt, with a share of 36.8 per cent, followed by non-resident deposits (23.1 per cent) and short-term trade credit.

At the end of December 2021, long-term debt, with original maturity of above one year, was placed at $500.3 billion, recording an increase of $1.7 billion over its level at the end of September 2021.

The share of short-term debt, with original maturity of up to one year, in total external debt increased to 18.6 per cent at the end of December 2021 from 17.4 per cent at end-September 2021.

US dollar denominated debt remained the largest component of India's external debt, with a share of 52 per cent at end-December 2021, followed 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 shows that the outstanding external debt of government marginally declined while that of non-government sector increased as at end-December 2021 over the previous quarter,'' the report said.

Also, debt service (principal repayments plus interest payments) increased to 4.9 per cent of current receipts at end-December 2021 from 4.7 per cent at end-September 2021.

(With inputs from PTI)

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

IPL 2022: Orange cap, Purple cap, play-offs schedule after RCB vs LSG match

IPL 2022: Orange cap, Purple cap, play-offs schedule after RCB vs LSG match

IPL 2022: Rajat Patidar-led RCB knock out LSG in Eliminator, will face RR in Qualifiers 2

IPL 2022: Rajat Patidar-led RCB knock out LSG in Eliminator, will face RR in Qualifiers 2

Daily Horoscope for Thursday, May 26, 2022, for all zodiac signs by astrologer Vinayak Vishwas...

Daily Horoscope for Thursday, May 26, 2022, for all zodiac signs by astrologer Vinayak Vishwas...

Watch: Woman gets caught after failed robbery bid at jewellery store in Virar, hilarious video goes...

Watch: Woman gets caught after failed robbery bid at jewellery store in Virar, hilarious video goes...

Maharashtra: MVA & BJP to be pitted against each other in elections for 10 Legislative Council seats...

Maharashtra: MVA & BJP to be pitted against each other in elections for 10 Legislative Council seats...