India’s External Debt as at the end of June 2024

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پی ڈی ایف ( 609449 )

India’s External Debt as at the end of June 2024

The stock of external debt at end-June 2024 as well as revised data for earlier quarters are set out in Statements I (IMF format)¹ and II (old format). The major developments relating to India’s external debt as at end-June 2024 are presented below.

Highlights

At end-June 2024, India’s external debt was placed at US$ 682.3 billion, an increase of US$ 13.3 billion over its level at end-March 2024 (Table 1).
The external debt to GDP ratio was 18.8 per cent at end-June 2024 as compared with 18.9 per cent at end-March 2024.
Valuation effect due to the appreciation of the US dollar vis-à-vis the Indian rupee and other major currencies such as yen, the euro and SDR² amounted to US$ 3.0 billion during the quarter ended June 2024. Excluding the valuation effect, external debt would have increased by US$ 16.3 billion instead of US$ 13.3 billion at end-June 2024 over end-March 2024.
At end-June 2024, long-term debt (with original maturity of above one year) was placed at US$ 549.6 billion, recording an increase of 1.5 percent (US$ 8.2 billion) over its level at end-March 2024.
The share of short-term debt (with original maturity of up to one year) in total external debt increased to 19.4 per cent at end-June 2024 from 19.1 per cent at end-March 2024. The ratio of short-term debt (original maturity) to foreign exchange reserves increased to 20.3 per cent at end-June 2024 (19.7 per cent at end-March 2024).
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 44.0 per cent of total external debt at end-June 2024 (43.4 per cent at end-March 2024) and stood at 46.0 per cent of foreign exchange reserves (44.9 per cent at end-March 2024) (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-June 2024, followed by debt denominated in the Indian rupee (31.2 per cent), yen (5.4 per cent), SDR (5.1 per cent), and euro (2.9 per cent).
Outstanding debt of both government and non-government sectors increased at end-June 2024 over its level at end-March 2024 (Table 3).
The share of outstanding debt of non-financial corporations in total external debt was the highest at 37.4 per cent, followed by deposit-taking corporations (except the central bank) (28.4 per cent), general government (21.9 per cent) and other financial corporations (7.5 per cent).
Loans remained the largest component of external debt, with a share of 33.0 per cent, followed by currency and deposits (23.5 per cent), trade credit and advances (18.6 per cent) and debt securities (17.1 per cent) (Table 4).
Debt servicing (i.e., principal repayments and interest payments) stood at 6.6 per cent of current receipts at end-June 2024 as compared with 6.7 per cent at end-March 2024 (Table 5).

(Puneet Pancholy)
Chief General Manager

Press Release: 2024-2025/1189

Table 1: External Debt – Outstanding and Variation
(US$ billion, unless indicated otherwise)
Sector	Outstanding as at end of			Absolute Variation		Percentage Variation
Sector	June 2023 PR	March 2024 PR	June 2024 P	June 2024 over June 2023	June 2024 over March 2024	June 2024 over June 2023	June 2024 over March 2024
1	2	3	4	5	6	7	8
I. General Government	132.9	148.7	149.4	16.5	0.7	12.4	0.5
II. Central Bank	0.2	0.2	0.3	0.1	0.1	37.3	29.6
III. Deposit-taking Corporations, except the Central Bank	167.2	186.8	194.1	26.9	7.3	16.1	3.9
IV. Other Sectors	297.7	301.6	306.6	8.9	5.0	3.0	1.7
IV.1. Other financial corporations	47.7	48.5	51.3	3.5	2.8	7.4	5.7
IV.2. Non-financial corporations	249.9	253.1	255.3	5.4	2.2	2.1	0.9
IV.3. Households and nonprofit institutions serving households (NPISHs)	0.0	0.0	0.0	0.0	0.0	-13.9	-0.2
V. Direct Investment: Intercompany Lending	30.9	31.6	31.9	1.0	0.3	3.4	0.8
Total Debt (I to V)	628.8	668.9	682.3	53.5	13.3	8.5	2.0
Memo Items:
A. Long-term Debt (original maturity)@	505.2	541.3	549.6	44.3	8.2	8.8	1.5
B. Short-term Debt (original maturity)#	123.6	127.6	132.7	9.1	5.1	7.4	4.0
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-June 2024
(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	10.4	11.2	12.0	115.8	149.4
I.A. Short-term Debt	0.5	-	-	-	0.5
I.B. Long-term Debt	9.8	11.2	12.0	115.8	148.9
II. Central Bank	0.3	0.0	0.0	0.0	0.3
II.A. Short-term Debt	0.3	-	-	-	0.3
II.B. Long-term Debt	0.0	0.0	0.0	0.0	0.0
III. Deposit-taking Corporations, except the Central Bank	117.8	29.3	9.0	38.0	194.1
III.A. Short-term Debt	4.6	-	-	-	4.6
III.B. Long-term Debt	113.2	29.3	9.0	38.0	189.5
IV. Other Sectors	164.4	19.4	29.0	93.7	306.6
IV.A. Short-term Debt	127.3	-	-	-	127.3
IV.B. Long-term Debt	37.1	19.4	29.0	93.7	179.3
IV.1. Other financial corporations	6.3	5.7	12.4	26.9	51.3
IV.1.A. Short-term Debt	1.3	-	-	-	1.3
IV.1.B. Long-term Debt	5.0	5.7	12.4	26.9	50.0
IV.2. Non-financial corporations	158.1	13.7	16.7	66.8	255.3
IV.2.A. Short-term Debt	126.0	-	-	-	126.0
IV.2.B. Long-term Debt	32.1	13.7	16.7	66.8	129.3
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	7.3	3.5	4.6	16.5	31.9
A. Total Short-term Debt	132.7	-	-	-	132.7
B. Total Long-term Debt	167.4	63.5	54.7	264.0	549.6
C. Total Debt (A+B)	300.1	63.5	54.7	264.0	682.3
Memo Items:
Short-term Debt (residual maturity) as per cent of Total External Debt					44.0
Short-term Debt (residual maturity) as per cent of Foreign Exchange Reserves					46.0
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			End-June
Component	2022	2023 PR	2024 PR	2024 P
1	2	3	4	5
A. Government Debt (I+II)	130.8	133.3	148.7	149.4
(As percentage of GDP)	(4.2)	(4.1)	(4.2)	(4.1)
I. External Debt on Government Account under External Assistance	86.7	91.1	95.5	95.3
II. Other Government External Debt@	44.1	42.3	53.2	54.1
B. Non-government Debt	488.0	490.7	520.2	532.8
(As percentage of GDP)	(15.7)	(15.0)	(14.7)	(14.7)
B.1. Central Bank	0.1	0.1	0.2	0.3
B.2. Deposit-taking Corporations, except the Central Bank	160.4	163.4	186.8	194.1
B.3. Other Financial Corporations	51.1	55.1	48.5	51.3
B.4. Non-financial Corporations	248.8	242.6	253.1	255.3
B.5. Households and nonprofit institutions serving households (NPISHs)	0.0	0.0	0.0	0.0
B.6. Direct Investment: Intercompany Lending	27.6	29.4	31.6	31.9
C. Total Debt (A+B)	618.8	624.0	668.9	682.3
(As percentage of GDP)	(19.9)	(19.0)	(18.9)	(18.8)
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			End-June
Instrument	2022	2023 PR	2024 PR	2024 P
1	2	3	4	5
1. Special Drawing Rights (allocations)	22.9	22.3	21.9	21.8
2. Currency and Deposits	141.0	141.1	154.8	160.6
3. Debt Securities	112.6	104.7	115.1	116.4
4. Loans	196.9	202.2	221.9	225.0
5. Trade Credit and Advances	117.8	124.3	123.7	126.6
6. Other Debt Liabilities	0.0	0.0	0.0	0.0
7. Direct Investment: Intercompany Lending	27.6	29.4	31.6	31.9
Total Debt	618.8	624.0	668.9	682.3
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	573.4	21.1	8.2	100.6	9.0	17.5	17.6
2022	618.8	19.9	5.2	98.1	8.3	20.0	19.7
2023 PR	624.0	19.0	5.3	92.7	8.2	22.2	20.6
2024 PR	668.9	18.9	6.7	96.6	7.4	19.7	19.1
End-June 2024 P	682.3	18.8	6.6	95.6	7.0	20.3	19.4
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.

¹ The concepts set out in the IMF’s 2013 External Debt Statistics (EDS) Guide are harmonized with those of the System of National Accounts (SNA) 2008 and the sixth edition of the IMF’s Balance of Payments and International Investment Position Manual (BPM6) published in 2009.

² SDR: Special Drawing Rights.