India’s external debt stands at $476 billion during FY15

Tribune News Service

New Delhi, August 28

The government today said India continues to be among the less vulnerable countries with its external debt indicators comparing well with other indebted developing countries.

India’s external debt stood at $475.8 billion at end-March 2015, increasing by $29.5 billion (6.6%) over the level at end-March 2014. The rise in external debt was due to the rise in long-term debt, particularly commercial borrowings and NRI deposits.

According to the Finance Ministry, India’s external debt has remained within manageable limits as indicated by the external debt-GDP ratio of 23.8% during 2014-15. External debt of the country continues to be dominated by the long-term borrowings. A cross-country comparison based on “International Debt Statistics 2015” of the World Bank, which presents the debt data for 2013, shows that India continues to be among the less vulnerable countries with its external debt indicators comparing well with other indebted developing countries. India’s key debt indicators, especially debt to GNI and debt service ratios continue to be comfortable.

At end-March 2015, long-term external debt was $391.1 billion, showing an increase of 10.3% over the level at end-March 2014.

Short-term external debt stood at $84.7 billion at end-March 2015, showing a decline of 7.6% over $91.7 billion at the end-March 2014. This owed mainly to the decline in FII investment in government Treasury bills.

Government (sovereign) external debt stood at $89.7 billion at end-March 2015 vis-a-vis $83.7 billion at end-March 2014. The share of government external debt in total external debt was 18.9% at end-March 2015 vis-à-vis 18.8% at end-March 2014.