External debt of India rises to $485.8 billion at June-end

Mumbai: India's external debt increased 3 per cent to USD 485.8 billion at June-end over the previous quarter, mainly due to increase in inflow of foreign portfolio investment into domestic capital market's debt segment.

"At end-June 2017, India's external debt was placed at USD 485.8 billion, recording an increase of USD 13.96 billion over its level at end-March 2017," a RBI data released today said.

The increase in the magnitude of external debt was partly due to valuation loss resulting from the depreciation of the US dollar vis-a-vis the rupee and other major currencies.

The external debt to GDP ratio stood at 20.3 per cent as at the June-end 2017, a shade higher than its level of 20.2 per cent at March-end 2017.

"Valuation loss due to depreciation of the US dollar vis-a-vis the Indian rupee and other major currencies was placed at USD 1.72 billion. Excluding the valuation effect, the increase in external debt would have been around USD 12.24 billion instead of USD 13.96 billion as at end-June 2017 over the level at end-March 2017," the central bank said.

Commercial borrowings continued to be the largest component of external debt with a share of 37.8 per cent, followed by NRI deposits (24.3 per cent) and short term trade credit (17.9 per cent).

The share of short-term debt (original maturity) in total external debt decreased to 18.3 per cent at June-end 2017 from 18.6 per cent at March-end 2017.

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.