<p>India's external debt rose by 8.2 per cent year-on-year to $620.7 billion as of March 2022, which according to the finance ministry is sustainable.</p>.<p>While 53.2 per cent of it was denominated in the US dollar, Indian rupee-denominated debt, estimated at 31.2 per cent, was the second largest, as per the status report on India's external debt released by the ministry.</p>.<p>"India’s external debt continues to be sustainable and prudently managed. As of end-March 2022, it stood at $620.7 billion, growing by 8.2 per cent over the level a year ago. External debt as a ratio to GDP was 19.9 per cent, while reserves to external debt ratio were 97.8 per cent," it said.</p>.<p>Foreign currency reserves as a ratio to external debt stood slightly lower at 97.8 per cent as of end-March 2022 than 100.6 per cent a year ago.</p>.<p>The report said the long-term debt estimated at $499.1 billion constituted the largest chunk of 80.4 per cent, while the short-term debt at $121.7 billion accounted for 19.6 per cent of the total.</p>.<p>The short-term trade credit was predominantly in the form of trade credit (96 per cent) financing imports.</p>.<p>The sovereign debt at $130.7 billion rose higher by 17.1 per cent over its level a year ago, mainly because of the additional allocation of Special Drawing Rights (SDR) by the International Monetary Fund (IMF) during 2021-22.</p>.<p>The non-sovereign debt, on the other hand, grew 6.1 per cent to $490.0 billion over the level as of end-March 2021, it said, adding commercial borrowings, NRI deposits and short-term trade credit are the three biggest constituents of the non-sovereign debt, accounting for as much as 95.2 per cent.</p>.<p>While NRI deposits declined by 2 per cent to $139.0 billion, commercial borrowings at $209.71 billion and short-term trade credit at $117.4 billion rose by 5.7 per cent and 20.5 per cent, respectively, it said.</p>.<p>Observing that the debt vulnerability indicators continued to be benign, the report said the debt service ratio fell significantly to 5.2 per cent during 2021-22 from 8.2 per cent in the previous year, reflecting buoyant current receipts and moderating external debt service payments.</p>.<p>The debt service payment obligations arising out of the stock of external debt as of end-March 2022 are projected to trend downwards over the coming years, it said, adding that from a cross-country perspective, India’s external debt is modest.</p>.<p>In terms of various debt vulnerability indicators, India's sustainability was better than the Low-and Middle-Income Countries (LMICs) as a group and vis-a-vis many of them individually, it said.</p>
<p>India's external debt rose by 8.2 per cent year-on-year to $620.7 billion as of March 2022, which according to the finance ministry is sustainable.</p>.<p>While 53.2 per cent of it was denominated in the US dollar, Indian rupee-denominated debt, estimated at 31.2 per cent, was the second largest, as per the status report on India's external debt released by the ministry.</p>.<p>"India’s external debt continues to be sustainable and prudently managed. As of end-March 2022, it stood at $620.7 billion, growing by 8.2 per cent over the level a year ago. External debt as a ratio to GDP was 19.9 per cent, while reserves to external debt ratio were 97.8 per cent," it said.</p>.<p>Foreign currency reserves as a ratio to external debt stood slightly lower at 97.8 per cent as of end-March 2022 than 100.6 per cent a year ago.</p>.<p>The report said the long-term debt estimated at $499.1 billion constituted the largest chunk of 80.4 per cent, while the short-term debt at $121.7 billion accounted for 19.6 per cent of the total.</p>.<p>The short-term trade credit was predominantly in the form of trade credit (96 per cent) financing imports.</p>.<p>The sovereign debt at $130.7 billion rose higher by 17.1 per cent over its level a year ago, mainly because of the additional allocation of Special Drawing Rights (SDR) by the International Monetary Fund (IMF) during 2021-22.</p>.<p>The non-sovereign debt, on the other hand, grew 6.1 per cent to $490.0 billion over the level as of end-March 2021, it said, adding commercial borrowings, NRI deposits and short-term trade credit are the three biggest constituents of the non-sovereign debt, accounting for as much as 95.2 per cent.</p>.<p>While NRI deposits declined by 2 per cent to $139.0 billion, commercial borrowings at $209.71 billion and short-term trade credit at $117.4 billion rose by 5.7 per cent and 20.5 per cent, respectively, it said.</p>.<p>Observing that the debt vulnerability indicators continued to be benign, the report said the debt service ratio fell significantly to 5.2 per cent during 2021-22 from 8.2 per cent in the previous year, reflecting buoyant current receipts and moderating external debt service payments.</p>.<p>The debt service payment obligations arising out of the stock of external debt as of end-March 2022 are projected to trend downwards over the coming years, it said, adding that from a cross-country perspective, India’s external debt is modest.</p>.<p>In terms of various debt vulnerability indicators, India's sustainability was better than the Low-and Middle-Income Countries (LMICs) as a group and vis-a-vis many of them individually, it said.</p>