India’s external debt at the end of March 2024 was placed at $663.8 billion, an increase of $39.7 billion from its level at end-March 2023.
The external debt-to-GDP ratio declined to 18.7% at end-March 2024 from 19.0% at end-March 2023, according to data released by RBI on Tuesday. Valuation effect due to the appreciation of the U.S. dollar vis-à-vis the Indian rupee and other major currencies such as yen, euro and SDR amounted to $8.7 billion. Excluding the valuation effect, external debt would have increased by $48.4 billion instead of $39.7 billion at end-March 2024 over end-March 2023, the RBI said.
At end-March 2024, long-term debt (with original maturity of above one year) was placed at $541.2 billion, recording an increase of $45.6 billion over its level at end-March 2023. The share of short-term debt (with original maturity of up to one year) in total external debt declined to 18.5% at end-March 2024 from 20.6% at end-March 2023. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves declined to 19% at end-March 2024 (22.2% at end-March 2023).
Short-term debt on residual maturity basis (i.e., debt obligations that include long-term debt by original maturity falling due over the next 12 months and short-term debt by original maturity) constituted 42.9% of the total external debt at end-March 2024 (44.0% at end-March 2023) and stood at 44.1% of foreign exchange reserves (47.4% at end-March 2023), the RBI said.
U.S. dollar-denominated debt remained the largest component of India’s external debt, with a share of 53.8% at end-March 2024, followed by debt denominated in the Indian rupee (31.5%), yen (5.8%), SDR (5.4%), and euro (2.8%).
Outstanding debt of both government and non-government sectors increased at end-March 2024 over the level a year earlier.
The share of outstanding debt of non-financial corporations in total external debt was the highest at 37.4%, followed by deposit-taking corporations (except the central bank) (28.1%), general government (22.4%) and other financial corporations (7.3%).
Loans remained the largest component of external debt, with a share of 33.4%, followed by currency and deposits (23.3%), trade credit and advances (17.9%) and debt securities (17.3%).
