India’s external debt is US$ 570.0 billion -21.1% of GDP- as on 30/06/2021

RESERVE BANK OF INDIA

Date : Jun 30, 2021

India’s External Debt as at the end of March 2021

The stock of external debt at end-March 2021 as well as revised data for earlier quarters are set out in Statements I (old format) and II (IMF format)1. The major developments relating to India’s external debt as at end-March 2021 are presented below.

Highlights

At end-March 2021, India’s external debt was placed at US$ 570.0 billion, recording an increase of US$ 11.5 billion over its level at end-March 2020 (Table 1).

The external debt to GDP ratio increased to 21.1 per cent at end-March 2021 from 20.6 per cent at end-March 2020.

Valuation loss due to the depreciation of the US dollar vis-à-vis Indian rupee and major currencies such as euro, SDR2 and pound sterling was placed at US$ 6.8 billion. Excluding the valuation effect, the increase in external debt would have been US$ 4.7 billion instead of US$ 11.5 billion at end-March 2021 over end-March 2020.

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).

At end-March 2021, long-term debt (with original maturity of above one year) was placed at US$ 468.9 billion, recording an increase of US$ 17.3 billion over its level at end-March 2020.

The share of short-term debt (with original maturity of up to one year) in total external debt declined to 17.7 per cent at end-March 2021 from 19.1 per cent at end-March 2020; the ratio of short-term debt (original maturity) to foreign exchange reserves declined to 17.5 per cent at end-March 2021 (22.4 per cent at end-March 2020).

Short-term debt on residual maturity basis (i.e., debt obligations that include long-term debt by original maturity falling due over the next twelve months and short-term debt by original maturity) constituted 44.6 per cent of total external debt at end-March 2021 (42.4 per cent at end-March 2020) and stood at 44.1 per cent of foreign exchange reserves (49.6 per cent at end-March 2020) (Table 2).

US dollar denominated debt remained the largest component of India’s external debt, with a share of 52.1 per cent at end-March 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).

The borrower-wise classification shows that the outstanding debt of both government and non-government sectors increased at end-March 2021 (Table 3).

The share of outstanding debt of non-financial corporations in total external debt was the highest at 40.4 per cent, followed by deposit-taking corporations (except the central bank) (28.2 per cent), general government (18.8 per cent) and other financial corporations (8.1 per cent).

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 (17.0 per cent) (Table 4).

Debt service (principal repayments plus interest payments) increased to 8.2 per cent of current receipts at end-March 2021 as compared with 6.5 per cent at end-March 2020, reflecting higher repayments and lower current receipts (Table 5).

(Yogesh Dayal)
Chief General Manager

Table 1: External Debt – Outstanding and Variation
(US$ billion)
ComponentOutstanding as at end-MarchAbsolute variationPercentage variation
2019 R2020 PR2021 PMar-20 over Mar-19Mar-21 over Mar-20Mar-20 over Mar-19Mar-21 over Mar-20
12345678
1. Multilateral57.459.969.72.59.74.416.3
2. Bilateral26.628.131.01.42.95.410.4
3. IMF5.55.45.6-0.10.2-1.73.8
4. Trade Credit7.77.06.5-0.8-0.5-9.7-6.8
5. Commercial Borrowings205.8219.5213.213.7-6.36.7-2.9
6. Non-resident Deposits130.4130.6141.90.211.30.18.7
7. Rupee Debt1.21.01.0-0.10.0-11.7-4.6
8. Short-term Debt108.4106.9101.1-1.5-5.8-1.4-5.4
   Of which:       
   Short-term Trade Credit102.4101.497.3-1.0-4.1-1.0-4.1
Total Debt543.1558.4570.015.311.52.82.1
Memo Items:       
A. Long-term Debt (original maturity)@434.7451.6468.916.817.33.93.8
B. Short-term Debt (original maturity)#108.4106.9101.1-1.5-5.8-1.4-5.4
R: Revised. PR: Partially Revised. P: Provisional.
@: Debt with original maturity of above one year.
#: Debt with original maturity of up to one year.
Table 2: Residual Maturity of Outstanding External Debt as at end-March 2021
(US$ billion)
SectorShort-term up to one year1 to 2 years2 to 3 yearsMore than 3 yearsTotal (2 to 5)
123456
I. General Government6.37.88.384.9107.2
    I.A. Short-term Debt0.3   0.3
    I.B. Long-term Debt6.07.88.384.9107.0
II. Central Bank0.20.00.00.00.2
    II.A. Short-term Debt0.2   0.2
    II.B. Long-term Debt0.00.00.00.00.0
III. Deposit-taking Corporations, except the Central Bank108.219.99.822.9160.7
    III.A. Short-term Debt1.7   1.7
    III.B. Long-term Debt106.519.99.822.9159.1
IV. Other Sectors134.027.130.984.6276.6
    IV.A. Short-term Debt99.0   99.0
    IV.B. Long-term Debt35.027.130.984.6177.6
     IV.1. Other financial corporations6.09.410.820.246.4
      IV.1.A. Short-term Debt1.7   1.7
      IV.1.B. Long-term Debt4.39.410.820.244.7
     IV.2. Non-financial corporations127.917.620.164.4230.1
      IV.2.A. Short-term Debt97.3   97.3
      IV.2.B. Long-term Debt30.717.620.164.4132.9
     IV.3. Households and nonprofit institutions serving households (NPISHs)0.00.00.00.00.0
      IV.3.A. Short-term Debt0.0   0.0
      IV.3.B. Long-term Debt0.00.00.00.00.0
V. Direct Investment: Intercompany Lending5.62.83.213.525.3
A. Total Short-term Debt101.1   101.1
B. Total Long-term Debt153.257.652.2205.9468.9
C. Total Debt (A+B)254.357.652.2205.9570.0
Memo Items:     
Short-term Debt (residual maturity) as per cent of Total External Debt    44.6
Short-term Debt (residual maturity) as per cent of Foreign Exchange Reserves    44.1
Table 3: Government and Non-government External Debt
(US$ billion)
ComponentEnd-March
20182019 R2020 PR2021 P
12345
A. Government Debt (I+II)111.9103.8100.9107.2
   (As percentage of GDP)(4.3)(3.8)(3.7)(4.0)
   I. External Debt on Government Account under External Assistance68.668.872.784.5
   II. Other Government External Debt @43.435.028.122.7
B. Non-government Debt417.3439.3457.6462.8
   (As percentage of GDP)(15.9)(16.1)(16.9)(17.1)
   B.1. Central Bank0.30.20.20.2
   B.2. Deposit-taking Corporations, except the Central Bank154.6164.3158.2160.7
   B.3. Other Financial Corporations26.431.240.946.4
   B.4. Non-financial Corporations220.4226.4235.4230.1
   B.5. Households and nonprofit institutions serving households (NPISHs)0.00.00.00.0
   B.6. Direct Investment: Intercompany Lending15.717.122.825.3
C. Total Debt (A+B)529.3543.1558.4570.0
   (As percentage of GDP)(20.1)(19.9)(20.6)(21.1)
R: Revised. PR: Partially Revised. P: Provisional.
@: Other government external debt includes defence debt, investment in Treasury Bills/government securities by FPIs, foreign central banks and international institutions and IMF.
Table 4: Outstanding External Debt by Instruments
(US$ billion)
InstrumentEnd-March
20182019 R2020 PR2021 P
12345
1. Special Drawing Rights (allocations)5.85.55.45.6
2. Currency and Deposits127.6134.4134.1143.8
3. Debt Securities98.391.997.596.7
4. Loans178.7189.0194.3198.3
5. Trade Credit and Advances103.2105.2104.3100.3
6. Other Debt Liabilities0.00.00.00.0
7. Direct Investment: Intercompany Lending15.717.122.825.3
Total Debt529.3543.1558.4570.0
R: Revised. PR: Partially Revised. P: Provisional.
Table 5: India’s Key External Debt Indicators
(Per cent, unless indicated otherwise)
End-MarchExternal Debt
(US$ billion)
Ratio of External Debt to GDPDebt Service RatioRatio of Foreign Exchange Reserves to Total DebtRatio of Concessional Debt to Total DebtRatio of Short-term Debt (original maturity) to Foreign Exchange ReservesRatio of Short-term Debt (original maturity) to Total Debt
12345678
199183.828.335.37.045.9146.510.2
199693.726.626.223.144.723.25.4
2001101.322.116.641.735.48.63.6
2006139.117.110.1#109.028.412.914.0
2007172.417.74.7115.623.014.116.3
2008224.418.34.8138.019.714.820.4
2009224.520.74.4112.218.717.219.3
2010260.918.55.8106.916.818.820.1
2011317.918.64.495.914.921.320.4
2012360.821.16.081.613.326.621.7
2013409.422.45.971.311.133.123.6
2014446.223.95.968.210.430.120.5
2015474.723.87.672.08.825.018.0
2016484.823.48.874.39.023.217.2
2017471.019.88.378.59.423.818.7
2018529.320.17.580.29.124.119.3
2019 R543.119.96.476.08.726.320.0
2020 PR558.420.66.585.68.822.419.1
2021 P570.021.18.2101.29.117.517.7
R: Revised. PR: Partially Revised. P: Provisional.
# works out to 6.3 per cent with the exclusion of India Millennium Deposits (IMDs) repayments of US$ 7.1 billion and pre-payment of external debt of US$ 23.5 million.

1 The concepts set out in the IMF’s 2013 External Debt Statistics (EDS) Guide are harmonized with those of the System of National Accounts (SNA) 2008 and the sixth edition of the IMF’s Balance of Payments and International Investment Position Manual (BPM6) published in 2009.

2 SDR: Special Drawing Rights.

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