Unpleasant news for the Indian economy continues to flow in. In the latest, the Reserve Bank of India (RBI) has released data showing that India's external debt crossed half a trillion dollar ($529 billion) by the end of March 2018.
India's foreign currency debt grew by 12.4 per cent as compared to the figure at the end of March last year.
The data show that the ratio between India's external debt and the Gross Domestic Product (GDP) was 20.5 per cent at March-end this year. This was higher than the 20 per cent figure at the same time last year.
RBI says this rise can be attributed to increase in borrowings by Indians from overseas markets, deposits of non-resident Indians (NRIs) and rise in commercial borrowings.
https://www.indiatoday.in/business/...ion-mark-rupee-depreciates-1273797-2018-06-30
India's external debt rises $58.4 bn to $529.7 bn
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 (NRI) deposits, the RBI said on June 29.
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
The external debt to GDP ratio stood at 20.5 percent at end-March 2018, higher than its level of 20.0 percent at end-March 2017,it added.
As per the RBI data, share of commercial borrowings continued to be the largest component of external debt with a share of 38.2 percent, followed by NRI deposits (23.8 percent) and short-term trade credit (19.0 percent).
Debt service payments declined to 7.5 percent of current receipts at end-March 2018 as compared with 8.3 percent at end-March 2017.
https://www.moneycontrol.com/news/b...l-debt-rises-58-4-bn-to-529-7-bn-2654681.html
