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India’s total external debt at end-March this year was $475.8 billion, up 6.6 per cent from the corresponding period a year earlier. This was driven mostly by an increase in external commercial borrowing (ECB) and non-resident Indians’ deposits, showed data issued by the government on Friday.
As a percentage of gross domestic product, external debt was 23.8 per cent at end-March from 23.6 per cent as on March 2014.
Long-term debt was $391.1 bn, a rise of 10.3 per cent over March 2014. It was 82.2 per cent of the total external debt, as compared to 79.5 per cent at end-March 2014.
Short-term external debt was $84.7 bn, less by 7.6 per cent over the $91.7 bn at end-March 2014, and 17.8 per cent of the total external debt from 20.5 per cent in March 2014.
The share of government (sovereign) debt in total external debt was 18.9 per cent at end-March this year.
“A cross-country comparison based on International Debt Statistics 2015 of the World Bank, which presents the debt data for 2013, shows India continues to be among the less vulnerable countries, with its external debt indicators comparing well with other indebted developing countries,” the finance ministry stated.
ECB is a significant component in India’s external debt and key driver of its magnitude, it said.
“The rise in commercial borrowings was due to a spike in commercial bank loans and securitised borrowing. ECB has always been occupying the highest share in India’s external debt over the years. As at end-March 2015, ECB has the highest share of 38.2 per cent in India’s external debt,” it added.
