India’s Foreign Debt Rises Up by $10.6 Billion in 2016: RBI

India’s external debt currently stands at $485.6 billion primarily on account of a rise in outstanding NRI deposits.

The external debt to GDP ratio stood at 23.7 per cent at end-March. (Photo: iStockPhoto)

India’s external debt stood at USD 485.6 billion at the end of March 2016, recording an increase of USD 10.6 billion year-on-year, primarily on account of a rise in outstanding NRI deposits, the RBI said on Thursday.

The increase in the magnitude of external debt was partly offset by valuation gain resulting from the appreciation of the US dollar vis-a-vis the Indian rupee and other major currencies, the central bank said in a statement.

The external debt to GDP ratio stood at 23.7 per cent at end-March, 2016–a shade lower than its level of 23.8 per cent at end-March 2015, it added.

RBI said on residual maturity basis, short-term debt constituted about 42.6 per cent of the total external debt at end-March 2016, compared with 38.2 per cent at end-March 2015.

As per RBI data, share of commercial borrowings continued to be the largest component of external debt with a share of 37.3 per cent, followed by NRI deposits (26.1 per cent) and short-term trade credit (16.5 per cent).

(With inputs from PTI)