The stock of external debt at end-March 2022 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 2022 are presented below. Highlights
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At end-March 2022, India’s external debt was placed at US$ 620.7 billion, recording an increase of US$ 47.1 billion over its level at end-March 2021 (Table 1).
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The external debt to GDP ratio declined to 19.9 per cent at end-March 2022 from 21.2 per cent at end-March 2021.
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Valuation gains due to the appreciation of the US dollar vis-à-vis Indian rupee and major currencies such as yen, SDR2, and euro were placed at US$ 11.7 billion. Excluding the valuation effect, external debt would have increased by US$ 58.8 billion instead of US$ 47.1 billion at end-March 2022 over end-March 2021.
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At end-March 2022, long-term debt (with original maturity of above one year) was placed at US$ 499.1 billion, recording an increase of US$ 26.5 billion over its level at end-March 2021.
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The share of short-term debt (with original maturity of up to one year) in total external debt increased to 19.6 per cent at end-March 2022 from 17.6 per cent at end-March 2021. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves increased to 20.0 per cent at end-March 2022 (17.5 per cent at end-March 2021).
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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 43.1 per cent of total external debt at end-March 2022 (44.1 per cent at end-March 2021) and stood at 44.1 per cent of foreign exchange reserves (43.8 per cent at end-March 2021) (Table 2).
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US dollar denominated debt remained the largest component of India’s external debt, with a share of 53.2 per cent at end-March 2022, followed by debt denominated in the Indian rupee (31.2 per cent), SDR (6.6 per cent), yen (5.4 per cent), and the euro (2.9 per cent).
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Outstanding debt of both government and non-government sectors increased during 2021-22 (Table 3).
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The share of outstanding debt of non-financial corporations in total external debt was the highest at 40.3 per cent, followed by deposit-taking corporations (except the central bank) (25.6 per cent), general government (21.1 per cent) and other financial corporations (8.6 per cent).
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Loans remained the largest component of external debt, with a share of 33.0 per cent, followed by currency and deposits (22.7 per cent), trade credit and advances (19.0 per cent) and debt securities (17.1 per cent) (Table 4).
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Debt service (i.e., principal repayments and interest payments) declined to 5.2 per cent of current receipts at end-March 2022 as compared with 8.2 per cent at end-March 2021, reflecting lower repayments and higher current receipts (Table 5).
(Yogesh Dayal) Chief General Manager Press Release: 2022-2023/450
Table 1: External Debt – Outstanding and Variation |
(US$ billion, unless indicated otherwise) |
Sector |
Outstanding as at end-March |
Absolute Variation |
Percentage Variation |
2020 R |
2021 PR |
2022 P |
Mar. 2021 over Mar. 2020 |
Mar. 2022 over Mar. 2021 |
Mar. 2021 over Mar. 2020 |
Mar. 2022 over Mar. 2021 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
I. General Government |
100.9 |
111.6 |
130.8 |
10.8 |
19.1 |
10.7 |
17.1 |
II. Central Bank |
0.2 |
0.2 |
0.1 |
0.0 |
-0.1 |
-3.1 |
-56.6 |
III. Deposit-taking Corporations, except the Central Bank |
158.2 |
160.8 |
158.7 |
2.5 |
-2.0 |
1.6 |
-1.3 |
IV. Other Sectors |
276.4 |
275.9 |
303.5 |
-0.5 |
27.5 |
-0.2 |
10.0 |
IV.1. Other financial corporations |
40.7 |
55.2 |
53.2 |
14.5 |
-2.0 |
35.7 |
-3.6 |
IV.2. Non-financial corporations |
235.7 |
220.7 |
250.2 |
-15.0 |
29.5 |
-6.3 |
13.4 |
IV.3. Households and nonprofit institutions serving households (NPISHs) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
-25.4 |
-31.6 |
V. Direct Investment: Intercompany Lending |
22.7 |
25.2 |
27.7 |
2.5 |
2.5 |
10.9 |
10.0 |
Total Debt (I to V) |
558.4 |
573.7 |
620.7 |
15.3 |
47.1 |
2.7 |
8.2 |
Memo Items: |
|
|
|
|
|
|
|
A. Long-term Debt (original maturity)@ |
451.5 |
472.6 |
499.1 |
21.1 |
26.5 |
4.7 |
5.6 |
B. Short-term Debt (original maturity)# |
106.9 |
101.1 |
121.7 |
-5.8 |
20.6 |
-5.4 |
20.4 |
R: Revised. PR: Partially Revised. P: Provisional. |
@: Debt with original maturity of above one year. |
#: Debt with original maturity of up to one year. |
Table 2: Residual Maturity of Outstanding External Debt as at end-March 2022 |
(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 |
7.7 |
8.9 |
8.4 |
105.8 |
130.8 |
I.A. Short-term Debt |
0.9 |
|
|
|
0.9 |
I.B. Long-term Debt |
6.8 |
8.9 |
8.4 |
105.8 |
129.9 |
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 |
96.8 |
18.6 |
17.5 |
25.8 |
158.7 |
III.A. Short-term Debt |
1.9 |
|
|
|
1.9 |
III.B. Long-term Debt |
94.9 |
18.6 |
17.5 |
25.8 |
156.8 |
IV. Other Sectors |
157.4 |
28.8 |
28.7 |
88.6 |
303.5 |
IV.A. Short-term Debt |
118.8 |
|
|
|
118.8 |
IV.B. Long-term Debt |
38.6 |
28.8 |
28.7 |
88.6 |
184.6 |
IV.1. Other financial corporations |
11.5 |
11.7 |
5.7 |
24.4 |
53.2 |
IV.1.A. Short-term Debt |
1.4 |
|
|
|
1.4 |
IV.1.B. Long-term Debt |
10.0 |
11.7 |
5.7 |
24.4 |
51.7 |
IV.2. Non-financial corporations |
146.0 |
17.1 |
23.0 |
64.2 |
250.2 |
IV.2.A. Short-term Debt |
117.4 |
|
|
|
117.4 |
IV.2.B. Long-term Debt |
28.6 |
17.1 |
23.0 |
64.2 |
132.9 |
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 |
5.7 |
3.3 |
3.9 |
14.8 |
27.7 |
A. Total Short-term Debt |
121.7 |
|
|
|
121.7 |
B. Total Long-term Debt |
146.0 |
59.5 |
58.5 |
235.0 |
499.1 |
C. Total Debt (A+B) |
267.7 |
59.5 |
58.5 |
235.0 |
620.7 |
Memo Items: |
|
|
|
|
|
Short-term Debt (residual maturity) as per cent of Total External Debt |
43.1 |
Short-term Debt (residual maturity) as per cent of Foreign Exchange Reserves |
44.1 |
Table 3: Government and Non-government External Debt |
(US$ billion, unless indicated otherwise) |
Component |
End-March |
2019 |
2020 R |
2021 PR |
2022 P |
1 |
2 |
3 |
4 |
5 |
A. Government Debt (I+II) |
103.8 |
100.9 |
111.6 |
130.8 |
(As percentage of GDP) |
(3.8) |
(3.8) |
(4.1) |
(4.2) |
I. External Debt on Government Account under External Assistance |
68.8 |
72.7 |
84.5 |
86.7 |
II. Other Government External Debt@ |
35.0 |
28.1 |
27.1 |
44.1 |
B. Non-government Debt |
439.3 |
457.5 |
462.0 |
490.0 |
(As percentage of GDP) |
(16.1) |
(17.1) |
(17.1) |
(15.7) |
B.1. Central Bank |
0.2 |
0.2 |
0.2 |
0.1 |
B.2. Deposit-taking Corporations, except the Central Bank |
164.3 |
158.2 |
160.8 |
158.7 |
B.3. Other Financial Corporations |
31.2 |
40.7 |
55.2 |
53.2 |
B.4. Non-financial Corporations |
226.4 |
235.7 |
220.7 |
250.2 |
B.5. Households and nonprofit institutions serving households (NPISHs) |
0.0 |
0.0 |
0.0 |
0.0 |
B.6. Direct Investment: Intercompany Lending |
17.1 |
22.7 |
25.2 |
27.7 |
C. Total Debt (A+B) |
543.1 |
558.4 |
573.7 |
620.7 |
(As percentage of GDP) |
(19.9) |
(20.9) |
(21.2) |
(19.9) |
R: Revised. PR: Partially Revised. P: Provisional. |
@: Other government external debt includes defence debt, investment in treasury bills/government securities by FPIs, foreign central banks and international institutions, and SDR allocations by the IMF. |
Table 4: Outstanding External Debt by Instruments |
(US$ billion) |
Instrument |
End-March |
2019 |
2020 R |
2021 PR |
2022 P |
1 |
2 |
3 |
4 |
5 |
1. Special Drawing Rights (allocations) |
5.5 |
5.4 |
5.6 |
22.9 |
2. Currency and Deposits |
134.4 |
134.1 |
143.8 |
141.0 |
3. Debt Securities |
91.9 |
97.6 |
101.2 |
106.0 |
4. Loans |
189.0 |
194.2 |
197.5 |
205.0 |
5. Trade Credit and Advances |
105.2 |
104.3 |
100.3 |
118.2 |
6. Other Debt Liabilities |
0.0 |
0.0 |
0.0 |
0.0 |
7. Direct Investment: Intercompany Lending |
17.1 |
22.7 |
25.2 |
27.7 |
Total Debt |
543.1 |
558.4 |
573.7 |
620.7 |
R: Revised. PR: Partially Revised. P: Provisional. |
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 R |
558.4 |
20.9 |
6.5 |
85.6 |
8.8 |
22.4 |
19.1 |
2021 PR |
573.7 |
21.2 |
8.2 |
100.6 |
9.0 |
17.5 |
17.6 |
2022 P |
620.7 |
19.9 |
5.2 |
97.8 |
8.3 |
20.0 |
19.6 |
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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