India’s external debt at $682 billion as of end June

But external debt to GDP ratio was lower at 18.8 per cent at end-June 2024 as compared with 18.9 per cent at end-March 2024.

Valuation effect due to the appreciation of the US dollar vis-à-vis the Indian rupee and other major currencies such as yen, the euro and SDR2 amounted to $ 3.0 billion during the quarter ended June 2024. Excluding the valuation effect, external debt would have increased by $ 16.3 billion instead of $ 13.3 billion at end-June 2024 over end-March 2024.

Debt servicing – principal repayments and interest payments- stood at 6.6 percent of current receipts at end-June 2024 as compared with 6.7 per cent at end-March 2024.

At end-June 2024, long-term debt -with original maturity of above one year- amounted to $ 549.6 billion, up 1.5 percent or $ 8.2 billion over its level at end-March 2024.

The share of short-term debt-with original maturity of up to one year- in total external debt increased to 19.4 per cent at end-June 2024 from 19.1 per cent at end-March 2024. The ratio of short-term debt (original maturity) to foreign exchange reserves increased to 20.3 per cent at end-June 2024 from 19.7 per cent at end-March 2024.US dollar-denominated debt remained the largest component of India’s external debt, with a share of 54.6 per cent at end-June 2024, followed by debt denominated in the Indian rupee (31.2 per cent), yen (5.4 per cent), SDR (5.1 per cent), and euro (2.9 per cent).