“External debt-to-GDP ratio fell to 18.9% at end-March 2023 from 20% at end-March 2022,” according to Reserve Bank data on India’s external debt at end-March 2023 .
Valuation gains from the appreciation of the US dollar against the Indian rupee and major currencies such as the yen, SDR and euro were valued at $20.6 billion.
“Excluding the valuation effect, the external debt would have increased by $26.2 billion instead of $5.6 billion at end-March 2023 compared to end-March 2022,” the central bank added.
As of end-March 2023, according to the data, long-term debt (with original maturity over one year) was estimated at $496.3 billion, down $1.1 billion from its level at end of March 2022.
The share of short-term debt (with an initial maturity less than or equal to one year) in total external debt fell from 19.7% at end-March 2022 to 20.6% at end-March 2023. Similarly, the ratio short-term debt (original maturity) to foreign exchange reserves rose to 22.2% at end-March 2023 (20% at end-March 2022). RBI also said that US dollar-denominated debt remained the largest component of India’s external debt, with a share of 54.6% at end-March 2023, followed by Indian rupee-denominated debt (29.8%). ), SDRs (6.1%), the yen (5.7%) and the euro (3.2%).
Loans remained the main component of external debt, with a share of 32.5%, followed by currency and deposits (22.6%), trade credits and advances (19.9%) and debt securities. debt.
According to the central bank, debt service (principal repayments and interest payments) increased slightly to 5.3% of current receipts at end-March 2023, from 5.2% at end-March 2022, reflecting a higher debt.