The stock of external debt at end-March 2023 as well as revised data for earlier quarters are set out in Statements I (IMF format1) and II (old format). The major developments relating to India’s external debt as at end-March 2023 are presented below. Highlights -
At end-March 2023, India’s external debt was placed at US$ 624.7 billion, recording an increase of US$ 5.6 billion over its level at end-March 2022 (Table 1). -
The external debt to GDP ratio declined to 18.9 per cent at end-March 2023 from 20.0 per cent at end-March 2022. -
Valuation gains due to the appreciation of the US dollar vis-à-vis the Indian rupee and major currencies such as yen, SDR2, and euro were placed at US$ 20.6 billion. Excluding the valuation effect, external debt would have increased by US$ 26.2 billion instead of US$ 5.6 billion at end-March 2023 over end-March 2022. -
At end-March 2023, long-term debt (with original maturity of above one year) was placed at US$ 496.3 billion, recording a decline of US$ 1.1 billion over its level at end-March 2022. -
The share of short-term debt (with original maturity of up to one year) in total external debt increased to 20.6 per cent at end-March 2023 from 19.7 per cent at end-March 2022. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves increased to 22.2 per cent at end-March 2023 (20.0 per cent at end-March 2022). -
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 43.9 per cent of total external debt at end-March 2023 (43.2 per cent at end-March 2022) and stood at 47.4 per cent of foreign exchange reserves (44.0 per cent at end-March 2022) (Table 2). -
US dollar-denominated debt remained the largest component of India’s external debt, with a share of 54.6 per cent at end-March 2023, followed by debt denominated in the Indian rupee (29.8 per cent), SDR (6.1 per cent), yen (5.7 per cent), and the euro (3.2 per cent). -
Outstanding debt of both government and non-government sectors increased during 2022-23 (Table 3). -
The share of outstanding debt of non-financial corporations in total external debt was the highest at 38.9 per cent, followed by deposit-taking corporations (except the central bank) (25.7 per cent), general government (21.3 per cent) and other financial corporations (9.3 per cent). -
Loans remained the largest component of external debt, with a share of 32.5 per cent, followed by currency and deposits (22.6 per cent), trade credit and advances (19.9 per cent) and debt securities (16.7 per cent) (Table 4). -
Debt service (i.e., principal repayments and interest payments) increased marginally to 5.3 per cent of current receipts at end-March 2023 as compared with 5.2 per cent at end-March 2022, reflecting higher debt service (Table 5). (Yogesh Dayal)
Chief General Manager Press Release: 2023-2024/509
| Table 1: External Debt – Outstanding and Variation | | (US$ billion, unless indicated otherwise) | | Sector | Outstanding as at end-March | Absolute Variation | Percentage Variation | | 2021 R | 2022 PR | 2023 P | March 2022 over March 2021 | March 2023 over March 2022 | March 2022 over March 2021 | March 2023 over March 2022 | | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | | I. General Government | 111.6 | 130.8 | 133.3 | 19.1 | 2.5 | 17.1 | 1.9 | | II. Central Bank | 0.2 | 0.1 | 0.1 | -0.1 | 0.1 | -56.6 | 77.0 | | III. Deposit-taking Corporations, except the Central Bank | 160.8 | 158.7 | 160.2 | -2.0 | 1.5 | -1.3 | 0.9 | | IV. Other Sectors | 275.7 | 301.8 | 301.5 | 26.2 | -0.3 | 9.5 | -0.1 | | IV.1. Other financial corporations | 55.2 | 52.9 | 58.3 | -2.4 | 5.4 | -4.3 | 10.2 | | IV.2. Non-financial corporations | 220.4 | 248.9 | 243.3 | 28.6 | -5.7 | 13.0 | -2.3 | | IV.3. Households and nonprofit institutions serving households (NPISHs) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -31.5 | -24.3 | | V. Direct Investment: Intercompany Lending | 25.2 | 27.7 | 29.4 | 2.5 | 1.8 | 9.9 | 6.4 | | Total Debt (I to V) | 573.4 | 619.1 | 624.7 | 45.7 | 5.6 | 8.0 | 0.9 | | Memo Items: | | | | | | | | | A. Long-term Debt (original maturity)@ | 472.3 | 497.4 | 496.3 | 25.1 | -1.1 | 5.3 | -0.2 | | B. Short-term Debt (original maturity)# | 101.1 | 121.7 | 128.4 | 20.6 | 6.7 | 20.4 | 5.5 | | R: Revised. PR: Partially Revised. P: Provisional. | | @: Debt with original maturity of above one year. | #: Debt with original maturity of up to one year.
Note: Figures may not add up to total due to rounding off. |
| Table 2: Residual Maturity of Outstanding External Debt as at end-March 2023 | | (US$ billion, unless indicated otherwise) | | Sector | Short-term up to one year | 1 to 2 years | 2 to 3 years | More than 3 years | Total (2 to 5) | | 1 | 2 | 3 | 4 | 5 | 6 | | I. General Government | 8.4 | 8.7 | 9.8 | 106.4 | 133.3 | | I.A. Short-term Debt | 0.6 | – | – | – | 0.6 | | I.B. Long-term Debt | 7.8 | 8.7 | 9.8 | 106.4 | 132.7 | | II. Central Bank | 0.1 | 0.0 | 0.0 | 0.0 | 0.1 | | II.A. Short-term Debt | 0.1 | – | – | – | 0.1 | | II.B. Long-term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | III. Deposit-taking Corporations, except the Central Bank | 95.4 | 26.8 | 9.6 | 28.3 | 160.2 | | III.A. Short-term Debt | 2.1 | – | – | – | 2.1 | | III.B. Long-term Debt | 93.3 | 26.8 | 9.6 | 28.3 | 158.1 | | IV. Other Sectors | 163.9 | 29.2 | 20.6 | 87.8 | 301.5 | | IV.A. Short-term Debt | 125.5 | – | – | – | 125.5 | | IV.B. Long-term Debt | 38.5 | 29.2 | 20.6 | 87.8 | 176.0 | | IV.1. Other financial corporations | 14.3 | 7.3 | 7.1 | 29.6 | 58.3 | | IV.1.A. Short-term Debt | 1.6 | – | – | – | 1.6 | | IV.1.B. Long-term Debt | 12.7 | 7.3 | 7.1 | 29.6 | 56.7 | | IV.2. Non-financial corporations | 149.6 | 21.9 | 13.5 | 58.2 | 243.3 | | IV.2.A. Short-term Debt | 123.9 | – | – | – | 123.9 | | IV.2.B. Long-term Debt | 25.7 | 21.9 | 13.5 | 58.2 | 119.4 | | IV.3. Households and nonprofit institutions serving households (NPISHs) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | IV.3.A. Short-term Debt | 0.0 | – | – | – | 0.0 | | IV.3.B. Long-term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | V. Direct Investment: Intercompany Lending | 6.5 | 4.3 | 4.0 | 14.7 | 29.4 | | A. Total Short-term Debt | 128.4 | – | – | – | 128.4 | | B. Total Long-term Debt | 146.0 | 69.0 | 44.0 | 237.3 | 496.3 | | C. Total Debt (A+B) | 274.4 | 69.0 | 44.0 | 237.3 | 624.7 | | Memo Items: | | | | | | | Short-term Debt (residual maturity) as per cent of Total External Debt | 43.9 | | Short-term Debt (residual maturity) as per cent of Foreign Exchange Reserves | 47.4 | | Note: Figures may not add up to total due to rounding off. |
| Table 3: Government and Non-government External Debt | | (US$ billion, unless indicated otherwise) | | Component | End-March | | 2020 | 2021 R | 2022 PR | 2023 P | | 1 | 2 | 3 | 4 | 5 | | A. Government Debt (I+II) | 100.9 | 111.6 | 130.8 | 133.3 | | (As percentage of GDP) | (3.8) | (4.1) | (4.2) | (4.0) | | I. External Debt on Government Account under External Assistance | 72.7 | 84.5 | 86.7 | 91.1 | | II. Other Government External Debt@ | 28.1 | 27.1 | 44.1 | 42.3 | | B. Non-government Debt | 457.4 | 461.8 | 488.3 | 491.3 | | (As percentage of GDP) | (17.1) | (17.0) | (15.8) | (14.8) | | B.1. Central Bank | 0.2 | 0.2 | 0.1 | 0.1 | | B.2. Deposit-taking Corporations, except the Central Bank | 158.2 | 160.8 | 158.7 | 160.2 | | B.3. Other Financial Corporations | 40.7 | 55.2 | 52.9 | 58.3 | | B.4. Non-financial Corporations | 235.6 | 220.4 | 248.9 | 243.3 | | B.5. Households and nonprofit institutions serving households (NPISHs) | 0.0 | 0.0 | 0.0 | 0.0 | | B.6. Direct Investment: Intercompany Lending | 22.7 | 25.2 | 27.7 | 29.4 | | C. Total Debt (A+B) | 558.3 | 573.4 | 619.1 | 624.7 | | (As percentage of GDP) | (20.9) | (21.1) | (20.0) | (18.9) | | R: Revised. PR: Partially Revised. P: Provisional. | @: Other government external debt includes defence debt, investment in treasury bills/government securities by foreign portfolio investors, foreign central banks and international institutions, and SDR allocations by the IMF.
Note: Figures may not add up to total due to rounding off. |
| Table 4: Outstanding External Debt by Instruments | | (US$ billion) | | Instrument | End-March | | 2020 | 2021 R | 2022 PR | 2023 P | | 1 | 2 | 3 | 4 | 5 | | 1. Special Drawing Rights (allocations) | 5.4 | 5.6 | 22.9 | 22.3 | | 2. Currency and Deposits | 134.1 | 143.8 | 141.0 | 141.1 | | 3. Debt Securities | 97.6 | 106.9 | 112.3 | 104.4 | | 4. Loans | 194.2 | 191.9 | 197.5 | 203.1 | | 5. Trade Credit and Advances | 104.3 | 100.0 | 117.8 | 124.3 | | 6. Other Debt Liabilities | 0.0 | 0.0 | 0.0 | 0.0 | | 7. Direct Investment: Intercompany Lending | 22.7 | 25.2 | 27.7 | 29.4 | | Total Debt | 558.3 | 573.4 | 619.1 | 624.7 | R: Revised. PR: Partially Revised. P: Provisional.
Note: Figures may not add up to total due to rounding off. |
| Table 5: India’s Key External Debt Indicators | | (Per cent, unless indicated otherwise) | | End-March | External Debt
(US$ billion) | Ratio of External Debt to GDP | Debt Service Ratio | Ratio of Foreign Exchange Reserves to Total Debt | Ratio of Concessional Debt to Total Debt | Ratio of Short-term Debt (original maturity) to Foreign Exchange Reserves | Ratio of Short-term Debt (original maturity) to Total Debt | | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | | 1991 | 83.8 | 28.3 | 35.3 | 7.0 | 45.9 | 146.5 | 10.2 | | 1996 | 93.7 | 26.6 | 26.2 | 23.1 | 44.7 | 23.2 | 5.4 | | 2001 | 101.3 | 22.1 | 16.6 | 41.7 | 35.4 | 8.6 | 3.6 | | 2006 | 139.1 | 17.1 | 10.1# | 109.0 | 28.4 | 12.9 | 14.0 | | 2007 | 172.4 | 17.7 | 4.7 | 115.6 | 23.0 | 14.1 | 16.3 | | 2008 | 224.4 | 18.3 | 4.8 | 138.0 | 19.7 | 14.8 | 20.4 | | 2009 | 224.5 | 20.7 | 4.4 | 112.2 | 18.7 | 17.2 | 19.3 | | 2010 | 260.9 | 18.5 | 5.8 | 106.9 | 16.8 | 18.8 | 20.1 | | 2011 | 317.9 | 18.6 | 4.4 | 95.9 | 14.9 | 21.3 | 20.4 | | 2012 | 360.8 | 21.1 | 6.0 | 81.6 | 13.3 | 26.6 | 21.7 | | 2013 | 409.4 | 22.4 | 5.9 | 71.3 | 11.1 | 33.1 | 23.6 | | 2014 | 446.2 | 23.9 | 5.9 | 68.2 | 10.4 | 30.1 | 20.5 | | 2015 | 474.7 | 23.8 | 7.6 | 72.0 | 8.8 | 25.0 | 18.0 | | 2016 | 484.8 | 23.4 | 8.8 | 74.3 | 9.0 | 23.2 | 17.2 | | 2017 | 471.0 | 19.8 | 8.3 | 78.5 | 9.4 | 23.8 | 18.7 | | 2018 | 529.3 | 20.1 | 7.5 | 80.2 | 9.1 | 24.1 | 19.3 | | 2019 | 543.1 | 19.9 | 6.4 | 76.0 | 8.7 | 26.3 | 20.0 | | 2020 | 558.3 | 20.9 | 6.5 | 85.6 | 8.8 | 22.4 | 19.1 | | 2021 R | 573.4 | 21.1 | 8.2 | 100.6 | 9.0 | 17.5 | 17.6 | | 2022 PR | 619.1 | 20.0 | 5.2 | 98.1 | 8.3 | 20.0 | 19.7 | | 2023 P | 624.7 | 18.9 | 5.3 | 92.6 | 8.2 | 22.2 | 20.6 | | R: Revised. PR: Partially Revised. P: Provisional. | | # works out to 6.3 per cent with the exclusion of India Millennium Deposits (IMDs) repayments of US$ 7.1 billion and pre-payment of external debt of US$ 23.5 million. |
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