India’s exterior debt stood at $558.5 billion in March, a rise of $15.4 billion in contrast with the year-ago interval, in accordance to RBI information.
Commercial borrowings remained the most important part of the exterior debt, with a share of 39.4%, adopted by non-resident deposits at 23.4% and short-term commerce credit score at 18.2%.
The information confirmed valuation positive factors due to the appreciation of the U.S. greenback in opposition to the Indian rupee and different main currencies had been at $16.6 billion. “Excluding the valuation effect, the increase in external debt would have been $32 billion instead of $15.4 billion at end-March 2020 over end-March 2019,” it mentioned.
At the top of March, long-term debt, with unique maturity of above one 12 months, was positioned at $451.7 billion, an increase of $17 billion over the extent recorded in March 2019.
Short-term debt on residual maturity foundation constituted 42.4% of the entire exterior debt and 49.5% of international change reserves on the finish of March.
“U.S. dollar-denominated debt continued to be the largest component of India’s external debt, with a share of 53.7% at end-March 2020, followed by the Indian rupee (31.9%), yen (5.6%), SDR (4.5%) and the euro (3.5%),” the RBI mentioned.
The RBI additionally mentioned debt service (principal repayments plus curiosity funds) elevated marginally to 6.5% of present receipts on the finish of March in contrast to 6.4% in the identical interval a 12 months in the past. This displays increased curiosity funds on industrial borrowings and decrease present receipts, it added.