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India's external debt hits US$682.3 billion by end June 2024

Last Updated : Oct 03 2024 | 3:31 PM IST

At end-June 2024, India's external debt was placed at US$ 682.3 billion, an increase of US$ 13.3 billion over its level at end-March 2024, according to an update from RBI.

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

At end-June 2024, long-term debt (with original maturity of above one year) was placed at US$ 549.6 billion, recording an increase of 1.5 percent (US$ 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 (19.7 per cent at end-March 2024).

Short-term debt on residual maturity basis (i.e., debt obligations that include long-term debt by original maturity falling due over the next twelve months and short-term debt by original maturity) constituted 44.0 per cent of total external debt at end-June 2024 (43.4 per cent at end-March 2024) and stood at 46.0 per cent of foreign exchange reserves (44.9 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).