As per the standard practice, India's external debt statistics for the quarters ending March and June are released by the Reserve Bank of India with a lag of one quarter and those for the quarters ending September and December by the Ministry of Finance, Government of India. The external debt data as at end-March 2017 in rupees and US dollars as well as revised data for earlier quarters are set out in Statements 1 and 2, respectively. The major developments relating to India’s external debt as at end-March 2017 are presented below. Highlights At end-March 2017, India’s external debt witnessed a decline of 2.7 per cent over its level at end-March 2016, primarily on account of a decline in Non-resident Indian (NRI) deposits and commercial borrowings. The decline in the magnitude of external debt was partly due to valuation loss resulting from the depreciation of the US dollar vis-à-vis the Indian rupee. The external debt to GDP ratio stood at 20.2 per cent as at end-March 2017, lower than its level of 23.5 per cent at end-March 2016. Major highlights pertaining to India’s external debt as at end-March 2017 are presented below: -
At end-March 2017, India’s external debt was placed at US$ 471.9 billion, recording a decline of US$ 13.1 billion over its level at end-March 2016 (Table 1). -
Valuation loss due to depreciation of the US dollar vis-à-vis the Indian rupee was placed at US$ 1.5 billion. Excluding the valuation effect, the decline in external debt would have been US$ 14.6 billion instead of US$ 13.1 billion as at end-March 2017 over the level at end-March 2016. -
Commercial borrowings continued to be the largest component of external debt with a share of 36.7 per cent, followed by NRI deposits (24.8 per cent) and short-term trade credit (18.3 per cent). -
At end-March 2017, long-term debt was placed at US$ 383.9 billion, recording a decline of US$ 17.7 billion over its level at end-March 2016. -
The share of long-term debt in total external debt as at end-March 2017 was 81.4 per cent, lower than 82.8 per cent at end-March 2016. -
The share of short-term debt (original maturity) in total external debt increased to 18.6 per cent at end-March 2017 from 17.2 per cent at end-March 2016. The ratio of short-term debt (original maturity) to foreign exchange reserves increased to 23.8 per cent as at end-March 2017 (23.1 per cent at end-March 2016). -
On a residual maturity basis, short-term debt constituted 41.5 per cent of total external debt at end-March 2017 (42.7 per cent at end-March 2016) and stood at 52.9 per cent of total foreign exchange reserves (57.4 per cent at end-March 2016) (Table 2). -
US dollar denominated debt continued to be the largest component of India’s external debt with a share of 52.1 per cent as at end-March 2017, followed by the Indian rupee (33.6 per cent), SDR (5.8 per cent), Japanese yen (4.6 per cent) and Euro (2.9 per cent). -
The borrower classification shows that the outstanding debt of the Government increased; however, non-Government debt declined at end-March 2017 (Table 3). -
Debt service payments declined to 8.3 per cent of current receipts as at end-March 2017 as compared with 8.8 per cent at end-March 2016 (Table 4). Jose J. Kattoor Chief General Manager Press Release : 2016-2017/3536 Table 1: External Debt - Outstanding and Variation | (US$ billion) | Component | Outstanding as at end-March | Absolute variation | Percentage variation | 2015 | 2016 R | 2017 P | Mar-16 over Mar-15 | Mar-17 over Mar-16 | Mar-16 over Mar-15 | Mar-17 over Mar-16 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 1. Multilateral | 52.4 | 54.0 | 54.5 | 1.6 | 0.5 | 3.0 | 0.9 | 2. Bilateral | 21.7 | 22.5 | 23.2 | 0.7 | 0.7 | 3.4 | 3.1 | 3. IMF | 5.5 | 5.6 | 5.4 | 0.1 | -0.2 | 2.1 | -3.5 | 4. Trade Credit | 12.6 | 10.6 | 9.7 | -2.0 | -1.0 | -15.6 | -9.0 | 5. Commercial Borrowings | 180.3 | 180.7 | 173.1 | 0.4 | -7.7 | 0.2 | -4.2 | 6. NRI Deposits | 115.2 | 126.9 | 116.9 | 11.8 | -10.1 | 10.2 | -7.9 | 7. Rupee Debt | 1.5 | 1.3 | 1.2 | -0.2 | -0.1 | -15.1 | -3.9 | 8. Short-term Debt | 85.5 | 83.4 | 88.0 | -2.1 | 4.6 | -2.5 | 5.5 | Of which | | | | | | | | Short-term trade credit | 81.6 | 80.0 | 86.5 | -1.6 | 6.5 | -2.0 | 8.1 | Total External Debt (1 to 8) | 474.7 | 485.0 | 471.9 | 10.3 | -13.1 | 2.2 | -2.7 | Memo Items | | | | | | | | A. Long-Term Debt | 389.2 | 401.6 | 383.9 | 12.4 | -17.7 | 3.2 | -4.4 | B. Short-Term Debt | 85.5 | 83.4 | 88.0 | -2.1 | 4.6 | -2.5 | 5.5 | P: Provisional. R: Revised | Table 2: Residual Maturity of External Debt Outstanding as at End-March 2017 | (US$ billion) | Component | Short-term up to one year | Long-term | Total | 1 to 2 years | 2 to 3 years | More than 3 years | (2 to 5) | 1 | 2 | 3 | 4 | 5 | 6 | 1. Sovereign Debt (long-term) $ | 4.6 | 6.4 | 6.9 | 77.8 | 95.7 | 2. Commercial Borrowings # | 24.0 | 22.6 | 22.3 | 102.5 | 171.3 | 3. NRI deposits {(i)+(ii)+(iii)} | 79.3 | 16.6 | 10.2 | 10.7 | 116.9 | (i) FCNR(B) | 11.4 | 5.7 | 2.5 | 1.3 | 21.0 | (ii) NR(E)RA | 57.4 | 10.0 | 6.8 | 9.0 | 83.2 | (iii) NRO | 10.5 | 0.9 | 0.8 | 0.4 | 12.7 | 4. Short-term Debt* (original maturity) | 88.0 | | | | 88.0 | Total (1 to 4) | 195.9 | 45.6 | 39.3 | 191.1 | 471.9 | Memo Items | Short-term Debt (residual maturity) as per cent of Total External Debt | 41.5 | Short-term Debt (residual maturity) as per cent of Reserves | 52.9 | $: Inclusive of FPI Investments in Government Securities. #: Commercial Borrowings are inclusive of trade credit, FPI investments in corporate debt instruments and a portion of non-Government multilateral and bilateral borrowings and therefore may not tally with the figures provided in other Tables under original maturity. *: Also includes FPI investments in security receipts issued by Asset Reconstruction Companies (ARCs) under the extant corporate debt limits. | Table 3: Government and Non-Government External Debt | (US$ billion) | Component | End-March | 2014 | 2015 | 2016 R | 2017 P | 1 | 2 | 3 | 4 | 5 | A. Sovereign Debt (I+II) | 83.7 | 89.7 | 93.4 | 95.8 | (As a percentage of GDP) | 4.5 | 4.5 | 4.5 | 4.1 | I. External Debt on Government Account under External Assistance | 62.2 | 58.5 | 61.1 | 62.8 | II. Other Government External Debt @ | 21.5 | 31.3 | 32.4 | 33.0 | B. Non-Government Debt # | 362.5 | 385.0 | 391.6 | 376.1 | (As a percentage of GDP) | 19.4 | 19.4 | 19.0 | 16.1 | C. Total External Debt (A+B) | 446.2 | 474.7 | 485.0 | 471.9 | (As a percentage of GDP) | 23.9 | 23.9 | 23.5 | 20.2 | P: Provisional. R: Revised | | | | | @: Other Government external debt includes Defence Debt, investment in Government Securities by FPIs, Foreign Central Banks, International Institutions and IMF. #: Includes external debt of Monetary Authority. | Table 4: India’s Key External Debt Indicators | End-March | External Debt (US$ billion) | Ratio of External Debt to GDP (Per cent) | Debt Service Ratio (Per cent) | Ratio of Foreign Exchange Reserves to Total Debt (Per cent) | Ratio of Concessional Debt to Total Debt (Per cent) | Ratio of Short-Term Debt to Foreign Exchange Reserves (Per cent) | Ratio of Short-Term Debt to Total Debt (Per cent) | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 1991 | 83.8 | 28.7 | 35.3 | 7.0 | 45.9 | 146.5 | 10.2 | 1996 | 93.7 | 27.0 | 26.2 | 23.1 | 44.7 | 23.2 | 5.4 | 2001 | 101.3 | 22.5 | 16.6 | 41.7 | 35.4 | 8.6 | 3.6 | 2006 | 139.1 | 16.8 | 10.1# | 109.0 | 28.4 | 12.9 | 14.0 | 2007 | 172.4 | 17.5 | 4.7 | 115.6 | 23.0 | 14.1 | 16.3 | 2008 | 224.4 | 18.0 | 4.8 | 138.0 | 19.7 | 14.8 | 20.4 | 2009 | 224.5 | 20.3 | 4.4 | 112.2 | 18.7 | 17.2 | 19.3 | 2010 | 260.9 | 18.2 | 5.8 | 106.9 | 16.8 | 18.8 | 20.1 | 2011 | 317.9 | 18.2 | 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 | 23.9 | 7.6 | 72.0 | 8.8 | 25.0 | 18.0 | 2016 R | 485.0 | 23.5 | 8.8 | 74.3 | 9.0 | 23.1 | 17.2 | 2017 P | 471.9 | 20.2 | 8.3 | 78.4 | 9.3 | 23.8 | 18.6 | P: Provisional. R: Revised. # Works out to 6.3 per cent with the exclusion of India Millennium Deposits (IMDs) repayments of US$ 7.1 billion and prepayment of external debt of US$ 23.5 million. | | |