This is attributable to the fall in the external debt-to-GDP ratio of India to 18.7 percent as of the end of March 2024, compared to the year-ago level of 19.0 percent, thus reflecting improved macro fundamentals.
On a standalone basis, India's ex-debt was at $663.8 billion as of March 2024, higher by $39.7 billion than in March 2023. Significantly, with India's GDP growth surging in the meantime, it helps reduce India's debt-to-GDP ratio.
To be noted from RBI data:
The rise in external debt, $8.7 billion, a large part was due to valuation effects brought about by the strengthening of the US dollar against major currencies, including the Indian rupee, the yen, the euro, and the SDR.
Excluding valuation effects, the increase in outstanding external debt at end-March 2024 would be $48.4 billion compared with $39.7 billion at end-March 2023.
- Long-term debt, whose original maturity was over a year, stood at $541.2 billion at the end of March 2024, increasing by $45.6 billion compared to the stock posted at the end of March 2023.
- Share of short-term debt, like that whose original maturity was up to one year, in total external debt fell to 18.5 percent at the end of March 2024 from the share posted at the end of March 2023 of 20.6 percent.
Similarly, short-term debt-to-foreign-exchange reserves ratio declined from 22.2 per cent as at March 2023 to 19 per cent as at March 2024.
Short-Term Debt Based on Residual Maturity as at March 2024, short-term debt was 42.9 per cent of total external debt, compared to 44.0 per cent as at March 2023, and 44.1 per cent of foreign-exchange reserves compared to its level of 47.4 per cent as at March 2023.
- US dollar-denominated debt continued to be the single largest component of India's external debt standing at 53.8% of the total at end-March 2024 while debt denominated in Indian rupees accounted for 31.5%, followed by yen 5.8%, SDR 5.4% and euro 2.8%.
- Increase in outstanding debt of both the government and non-government sector as compared to last year up to March 2024.
• As of the end of 2010, non-financial corporations accounted for the biggest percentage of the outstanding debt in the total external debt at 37.4 percent.
• The largest share in the external debt was reported by loans at 33.4 percent, followed by currency and deposits at 23.3 percent, trade credit and advances at 17.9 percent, and debt securities amounting to 17.3 percent.
Debt-servicing, to include principal repayments and interest, has increased to 6.7% of current receipts, up from 5.3% at March 2023, largely due to higher debt-service obligations.
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