Indias foreign debt climbs by $10 billion, at $486 billion
The release said that the rise in external debt was primarily on account of a rise in outstanding NRI deposits.
India's external debt for the quarter ending March 2016 increased by 2.2%, at $485.6 billion, an increase of $10.6 billion as against $475 billion in March 2015, said the Reserve Bank of India (RBI).
As per the data released by RBI, the ratio of external debt to GDP which was 23.8% in March-end 2015 has marginally fallen to 23.7% in this year.
The release said that the rise in external debt was primarily on account of a rise in outstanding NRI deposits. Another reason for the increase in magnitude of external debt was partly offset by valuation gain resulting from depreciation of Rupee and other major currencies.
Valuation gain, due to appreciation of the US dollar against the Indian rupee and other major currencies, was placed at $5.9 billion. Excluding the valuation effect, the increase in external debt would have been higher by $16.4 billion at end-March 2016 over the level at end-March 2015.
The share of short-term debt (original maturity) in total debt witnessed a decline over the corresponding quarter of the previous year. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves declined to 23.1% as at end-March 2016 (25% as at end-March 2015).
Lastly, as per the data, across borrower categories, the outstanding debt of Government as well as non-Government debt increased and their shares in total external debt, were 19.2% and 80.8%, respectively, at end-March 2016
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.