India’s external debt rises 8.2% in one year: The Tribune India

Tribune press service

Sandeep Dikshit

New Delhi, September 5

India’s external debt increased by 8.2% at the end of March this year compared to a year ago.

The debt at the end of March 2022 was more than 620.7 billion dollars against 573.7 billion dollars at the end of March 2021.

While 53.2% of it was denominated in US dollars, Indian rupee-denominated debt, estimated at 31.2%, was the second largest, according to the External Debt Management Unit (EDMU) of the Ministry of Finance.

In a silver lining, external debt as a percentage of GDP fell slightly to 19.9%. According to the 28th edition of the State of India’s External Debt Report 2021-22, foreign exchange reserves as a percentage of external debt were slightly lower at 97.8% at the end of March 2022 compared to 100.6% it a year ago.

In addition, the debt service ratio fell to 5.2% in 2021-22, from 8.2% in 2020-21, due to buoyant current receipts and lower debt service payments. debt.

Debt service payment obligations arising from outstanding external debt at end-March 2022 are expected to follow a downward trend over the next few years, according to the report.

Long-term debt, estimated at $499.1 billion, made up the largest chunk at 80.4%, while short-term debt, at $121.7 billion, made up 19.6% of the total.

Short-term trade credit was mainly in the form of trade credit (96 percent) financing imports.

At the end of March 2022, sovereign external debt (SED) stood at $130.7 billion, up 17.1% from the level a year ago, reflecting the additional allocation of SDRs by the IMF in 2021-22.

SDRs fell from $5.5 billion to $22.9 billion at the end of March 2021.

Non-sovereign external debt, estimated at $490.0 billion at the end of March 2022, recorded a growth of 6.1% compared to the level a year ago.

Shirlene J. Manley