<p>India's external debt surged by $11.5 billion year-on-year to $570 billion as of March-end 2021, according to the Reserve Bank of India data released on Wednesday.</p>.<p>The external debt to GDP ratio rose to 21.1 per cent as of March-end 2021 from 20.6 per cent a year ago, the data on India's External Debt showed.</p>.<p>"Valuation loss due to the depreciation of the US dollar vis-a-vis Indian rupee and major currencies such as euro, SDR and pound sterling was placed at $6.8 billion.</p>.<p><strong>Read more: <a href="https://www.deccanherald.com/business/economy-business/40-employees-in-india-witness-reduction-in-total-pay-due-to-pandemic-survey-1003313.html" target="_blank">40% employees in India witness reduction in total pay due to pandemic: Survey </a></strong></p>.<p>“Excluding the valuation effect, the increase in external debt would have been $4.7 billion instead of $11.5 billion at end-March 2021 over end-March 2020," the RBI said.</p>.<p>Commercial borrowings remained the largest component of external debt, with a share of 37.4 per cent, followed by non-resident deposits (24.9 per cent) and short-term trade credit (17.1 per cent).</p>.<p>At March-end 2021, long-term debt (with an original maturity of above one year) was placed at $468.9 billion, recording an increase of $17.3 billion over its March-end 2020 level.</p>.<p>US dollar-denominated debt remained the largest component of India's external debt, with a share of 52.1 per cent as of March-end 2021, followed by the Indian rupee (33.3 per cent), yen (5.8 per cent), SDR (4.4 per cent) and the euro (3.5 per cent).</p>.<p>The borrower-wise classification shows that the outstanding debt of both government and non-government sectors increased by March 2021.</p>.<p>The instrument-wise classification shows that the loans were the largest component of external debt, with a share of 34.8 per cent, followed by currency and deposits (25.2 per cent), trade credit and advances (17.6 per cent) and debt securities (17 per cent).</p>.<p>The RBI also said that debt service (principal repayments plus interest payments) increased to 8.2 per cent of current receipts at March-end 2021 as compared to 6.5 per cent in March 2020, reflecting higher repayments and lower current receipts.</p>
<p>India's external debt surged by $11.5 billion year-on-year to $570 billion as of March-end 2021, according to the Reserve Bank of India data released on Wednesday.</p>.<p>The external debt to GDP ratio rose to 21.1 per cent as of March-end 2021 from 20.6 per cent a year ago, the data on India's External Debt showed.</p>.<p>"Valuation loss due to the depreciation of the US dollar vis-a-vis Indian rupee and major currencies such as euro, SDR and pound sterling was placed at $6.8 billion.</p>.<p><strong>Read more: <a href="https://www.deccanherald.com/business/economy-business/40-employees-in-india-witness-reduction-in-total-pay-due-to-pandemic-survey-1003313.html" target="_blank">40% employees in India witness reduction in total pay due to pandemic: Survey </a></strong></p>.<p>“Excluding the valuation effect, the increase in external debt would have been $4.7 billion instead of $11.5 billion at end-March 2021 over end-March 2020," the RBI said.</p>.<p>Commercial borrowings remained the largest component of external debt, with a share of 37.4 per cent, followed by non-resident deposits (24.9 per cent) and short-term trade credit (17.1 per cent).</p>.<p>At March-end 2021, long-term debt (with an original maturity of above one year) was placed at $468.9 billion, recording an increase of $17.3 billion over its March-end 2020 level.</p>.<p>US dollar-denominated debt remained the largest component of India's external debt, with a share of 52.1 per cent as of March-end 2021, followed by the Indian rupee (33.3 per cent), yen (5.8 per cent), SDR (4.4 per cent) and the euro (3.5 per cent).</p>.<p>The borrower-wise classification shows that the outstanding debt of both government and non-government sectors increased by March 2021.</p>.<p>The instrument-wise classification shows that the loans were the largest component of external debt, with a share of 34.8 per cent, followed by currency and deposits (25.2 per cent), trade credit and advances (17.6 per cent) and debt securities (17 per cent).</p>.<p>The RBI also said that debt service (principal repayments plus interest payments) increased to 8.2 per cent of current receipts at March-end 2021 as compared to 6.5 per cent in March 2020, reflecting higher repayments and lower current receipts.</p>