Department of Economic Affairs, Ministry of Finance
has been compiling and releasing quarterly statistics on India’s external debt
for the quarters ending September and December every year. This press release
relates to India’s external debt at end-September 2017, says a release from the
Ministry of Finance on 29 December, 2017.
end-September 2017, India’s external debt stock stood at US$ 495.7
billion, recording an increase of US$ 23.9 billion (5.1 per cent) over the
level at end-March 2017. The rise in external debt during the period was
primarily due to the increase in foreign portfolio investment (FPI) in the
debt segment of domestic capital market included under commercial
borrowings. Some increase in short-term debt primarily due to trade
related credit also contributed to the overall increase in total external
debt. On a sequential basis, total external debt at end-September 2017
increased by US$ 10.0 billion (2.1 per cent) from the end-June 2017
- The maturity
pattern of India’s external debt indicates dominance of long-term
borrowings. At end-September 2017, long-term external debt accounted for
81.3 per cent of India’s total external debt, while the remaining (18.7
per cent) was short-term external debt.
debt at end-September 2017 was at US$ 403.0 billion, showing an increase
of US$ 19.1 billion (5.0 per cent) over the level at end-March 2017.
Short-term external debt registered an increase of 5.4 per cent and stood
at US$ 92.7 billion at end-September 2017, though its share in total debt
at 18.7 per cent was only marginally higher than the 18.6 per cent at
loss (depreciation of US dollar against the SDR, Euro and pound sterling)
was at US$ 1.4 billion in September 2017 compared to March 2017. This
implies that excluding the valuation effect, increase in debt would have
been lower at US$ 22.5 billion instead of US$ 23.9 billion at
end-September 2017 over the end-March 2017 level.
- The shares
of Government (Sovereign) and non-Government debt in the total external
debt were 21.6 per cent and 78.4 per cent respectively, at end-September
2017 with the former’s share increasing from 19.4 per cent at end-March
2017. This was mainly due to the increasing level of foreign portfolio
investment in government securities.
- US dollar
denominated debt accounted for 50.0 per cent of India’s total external
debt at end-September 2017, followed by Indian rupee (35.7 per cent), SDR
(5.7 per cent), Japanese Yen (4.4 per cent), Euro (3.2 per cent), Pound
Sterling (0.6 per cent), and others (0.4 per cent).
- The foreign
exchange cover to total external debt improved to 80.7 per cent at
end-September 2017 compared to 78.4 per cent at end-March 2017.
- The ratio of
short-term external debt by original maturity to foreign exchange reserves
stood at 23.2 per cent at end-September 2017 as compared to 23.0 per cent
at end June 2017 and 23.8 per cent at end-March 2017.
- On a
residual maturity basis, short-term debt constituted 41.7 per cent of
total external debt at end-September 2017 (41.1 per cent at end-June 2017
and 41.5 per cent at end-March 2017) and its ratio to total foreign
exchange reserves was at 51.7 per cent (51.6 per cent at end-June 2017 and
52.9 per cent at end-March 2017).
The complete quarterly
report of India’s external debt at end-September 2017 is available on the
website of Ministry of Finance – www.dea.gov.in.
- The ratio of
concessional debt to total external debt was 9.1 per cent at end-September
2017, compared to the 9.3 per cent at end-March 2017.