India’s foreign debt has already surpassed $629 billion

Despite a decrease in the debt-to-GDP ratio, India’s foreign debt increased by $4.7 billion in the April to June quarter to reach USD 629.1 billion.

According to the RBI, “the external debt to GDP ratio decreased to 18.6% at the end of June 2023 from 18.8% at the end of March 2023.”

Amounting to USD 3.1 billion, the valuation impact as a result of the US dollar’s strengthening in comparison to other major currencies like the yen and SDR.

At the end of June 2023, debt denominated in US dollars still made up the majority of India’s foreign debt (54.4%), followed by debt denominated in Indian rupees (30.4%), SDRs (59.%), yens (5.7%), and euros (3.1%).

Without the value impact, foreign debt would have risen from end-March 2023 to end-June 2023 by $7.8 billion as opposed to $4.7 billion, according to the RBI.

The data shows that long-term debt (with an initial maturity of more than a year) was valued at USD 505.5 billion at the end of June 2023, a rise of USD 9.6 billion over its level at the conclusion of the previous quarter.

Short-term debt, defined as debt having an initial maturity of less than one year, was 19.6% of total foreign debt at the end of June 2023, down from 20.6 percentage points at the end of March 2023.

The general government’s outstanding debt fell, but non-government debt rose at the end of June 2023, according to the RBI.

With a share of 32.9%, loans continued to make up the majority of the foreign debt, followed by cash and deposits, trade credit and advances, and debt securities.