Menu
BW CFO World
Community for Finance Professionals, Consultants and allied businesses
  • Home
  • News
  • Videos
  • Articles
    • Credit & Capital
    • Economic Trends
    • Financial Compliance
    • Financial Leadership
    • Financial Management
    • Financial Reporting
    • Financial Strategy
    • Risk Management
    • Taxation
  • Featured
  • Nominate for Awards
Close Menu
indian rupee
September 5, 2022

India’s External Debt Rises 8.2% YoY

Urvi Srivastava Financial Reporting Debt, YoY

In terms of various debt vulnerability indicators, India’s sustainability was better than the Low-and-Middle Income Countries (LMICs) as a group and vis-à-vis many of them individually, the ministry said

India’s external debt is at USD 620.7 billion as of end-March 2022 and grew by 8.2 per cent over USD 573.7 billion as of end-March 2021, according to the data released by the Ministry of Finance on Monday. 

While 53.2 per cent of it was denominated in US dollars, Indian rupee-denominated debt, estimated at 31.2 per cent, was the second largest, the ministry added. 

External debt as a ratio to gross domestic product (GDP) fell marginally to 19.9 per cent as of end-March 2022 from 21.2 per cent a year ago. 

“Foreign currency reserves as a ratio to external debt stood slightly lower at 97.8 per cent as at end-March 2022 than 100.6 per cent a year ago,” the ministry added in the statement. 

The long-term debt, estimated at USD 499.1 billion, constituted the largest chunk of 80.4 per cent, while the short-term debt, at USD 121.7 billion, accounted for 19.6 per cent of the total. 

The ministry also said that commercial borrowings (CBs), NRIs deposits, short-term trade credit and multilateral loans together accounted for 90 per cent of the total external debt. 

“While NRI deposits marginally contracted during end-March 2021 and end-March 2022, CBs, short-term trade credit and multilateral loans, on the other hand, expanded during the same period. The rise in CBs, short-term trade credit and multilateral loans together was significantly larger than the contraction in NRI deposits,” it said. 

As of end-March 2022, sovereign external debt (SED) amounted to USD 130.7 billion, increasing by 17.1 per cent over the level a year ago, reflecting the additional allocation of SDRs by the International Monetary Fund (IMF) during 2021-22. 

The SDRs rose to USD 22.9 billion from USD 5.5 billion as of end-March 2021. FPI holding of G-Sec, on the other hand, slid to USD 19.5 billion from USD 20.4 billion a year ago.  

Talking about the non-sovereign external debt, it is estimated at USD 490.0 billion as of end-March 2022, posting a growth of 6.1 per cent over the level a year ago. CBs, NRI deposits, and short-term trade credit accounted for about 95 per cent of non-sovereign debt. 

“The short-term trade credit rose substantially by 20.7 per cent to USD 117.4 billion as at end-March 2022 on the back of a surge in imports during 2021-22,” according to the ministry. 

The debt service ratio fell to 5.2 per cent during 2021-22 from 8.2 per cent during 2020-21 due to buoyancy in current receipts and a decline in debt service payments. 

“The debt service payment obligations arising out of the stock of external debt as at end-March 2022 are projected to trend downwards over the coming years,” it said. 

Avatar

Urvi Shrivastav

→ Urvi Shrivastav

Blue Jet Healthcare Files INR 2,100 cr IPO Draft BYJU’s Likely To Raise $500mn: Reports

Related Posts

Mayank

Financial Reporting

Synergizing finance, strategy and management: The multipronged role of today’s CFO

NEC

Financial Reporting

NEC Corporation elevates India CFO Mayank Khandelwal to Head of Finance for Global Regional Headquarters and Country Affiliates

Screenshot 2023-04-18 190754

Financial Reporting

Ramesh Bafna Appointed As The New CFO Of Zepto; Succeeding Jitendra Nagpal

Selected Stories

  • MayankSynergizing finance, strategy and management: The multipronged role of today’s CFO

    Read more

  • NECNEC Corporation elevates India CFO Mayank Khandelwal to Head of Finance for Global Regional Headquarters and Country Affiliates

    Read more

  • Screenshot 2023-04-18 190754Ramesh Bafna Appointed As The New CFO Of Zepto; Succeeding Jitendra Nagpal

    Read more

  • Screenshot 2023-03-28 180755Infobip appoints Richard Kraska as Chief Financial Officer

    Read more

  • 1494568857_NoPMEQ_CFO-470CFO – From ‘Finance’ To ‘Futuristic’

    Read more

Movements

  • Screenshot 2023-03-28 180755Infobip appoints Richard Kraska as Chief Financial Officer
  • zUah2lDb_400x400Deloitte India Named Romal Shetty As CEO For Four-Year Term
  • cfo imageVishnuhari Pareek Named As Head Of Finance At Arkam Ventures
  • thumbnail_Sidharth1Siddharth Sehgal Is New CFO Of BeatO
  • Business men giving a handshake. Business conceptRamamurthy Becomes MD, CEO of BSE, SEBI approves appointment

Categories

  • Accounting
  • CFO Stance
  • Credit & Capital
  • Economic Trends
  • Featured
  • Financial Compliance
  • Financial Leadership
  • Financial Management
  • Financial Reporting
  • Financial Strategy
  • Financial Technologies
  • Global News
  • Interview
  • Movements
  • Risk Management
  • Taxation

Recent Comments

    Back To Top
    BW CFO World
    • Home
    • News
    • Videos
    • Articles
      • Credit & Capital
      • Economic Trends
      • Financial Compliance
      • Financial Leadership
      • Financial Management
      • Financial Reporting
      • Financial Strategy
      • Risk Management
      • Taxation
    • Featured
    • Nominate for Awards
    © Copyright BW BUSINESSWORLD 2018. All Rights Reserved.