India’s External Debt Rises to $529 Billion

India’s external debt stood at $529.7 billion at the end of March 2018, recording an increase of $58.4 billion year-on-year, primarily on account of a rise in commercial borrowings, short-term debt and non-resident Indian deposits, the RBI said, PTI reported. The increase in the magnitude of external debt was partly due to valuation loss resulting from the depreciation of the US dollar against major currencies, the central bank said in a statement late Friday. The external debt to GDP ratio stood at 20.5% at end-March 2018, higher than its level of 20% at end-March 2017, it added. As per the Reserve Bank of India data, share of commercial borrowings continued to be the largest component of external debt with a share of 38.2%, followed by NRI deposits (23.8%) and short-term trade credit (19%). Debt service payments declined to 7.5% of current receipts at end-March 2018 as compared with 8.3% at end-March 2017.