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India one of the worlds largest debtor nations on earth
Posted on August 29, 2010 by The Editors
Here is the table from the Indian Reserve bank which claims that Bharat is fifth in external debt. Most analysts know that the claim ( US $ 229.9 billion (22.0 per cent of GDP) paints a rosy picture and the real debt is more than a tirllion Dollars. The debt is also growing exponentially.
Reserve Bank of India
India’s External Debt as at the end of March 2009
As per the standard practice, India’s external debt statistics for the quarters ending March and June are released by the Reserve Bank of India and those for the quarters ending September and December by the Ministry of Finance, Government of India. The external debt data are released with a lag of one quarter. A detailed account of external debt as compiled in the standard format as at end-March 2009 in rupee and US dollar terms and revised data for the earlier quarters are set out in Statement 1 and 2, respectively. The developments relating to India’s external debt as at end-March 2009 are discussed in the following paragraphs.
Major Highlights of External Debt
(i) India’s external debt, as at end-March 2009, was placed at US $ 229.9 billion (22.0 per cent of GDP) recording an increase of US $ 5.3 billion or 2.4 per cent over the level of the previous year mainly due to the increase in trade credits.
(ii) As per an international comparison of external debt of the twenty most indebted countries, India was the fifth most indebted country in 2007.
(iii) By way of composition of external debt, the share of commercial borrowings was the highest at 27.3 per cent as at end-March 2009 followed by short-term debt (21.5 per cent), NRI deposits (18.1 per cent) and multilateral debt (17.2 per cent).
(iv) The debt service ratio has declined steadily over the years, and stood at 4.6 per cent as at end-March 2009.
(v) Excluding the valuation effects due to appreciation of US dollar against other major currencies and Indian rupee, the stock of external debt would have increased by US$ 18.7 billion as compared with the stock as at end-March 2008.
(vi) The share of short-term debt in total debt increased to 21.5 per cent at end-March 2009 from 20.9 per cent at end-March 2008, primarily on account of rise in short-term trade credits.
(vii) Based on residual maturity, the short-term debt accounted for 40.6 per cent of the total external debt at end-March 2009
(viii) The ratio of short-term debt to foreign exchange reserves at 19.6 per cent in March 2009 was higher compared to 15.2 per cent in March 2008.
(ix) The US dollar continues to remain the dominant currency accounting for 57.1 per cent of the total external debt stock as at end-march 2009.
(x) India’s foreign exchange reserves provided a cover of 109.6 per cent to the external debt stock at the end of March 2009 as compared with 137.9 per cent as at end-March 2008.
Here is a report from HinduBusinessline:
India’s external debt rises by 8.1% at Sept-end
Our Bureau
New Delhi, Dec. 31
The country’s total external debt stock, at the end of September, recorded an increase of 8.1 per cent from the end-March 2009 estimates.
The external debt at the end of September stood $242.8 billion, an increase of $18.2 billion over end-March.
While the long-term debt showed an increase of $19.2 billion (10.6 per cent) and went up to $200.4 billion, the short-term debt came down by $985 million (-2.3 per cent) to $42.4 billion. The increase in external debt over the previous quarter stood at 5.7 per cent or $13 billion.
Valuation effect on account of depreciation of the dollar against international currencies accounted for $8.3 billion (45.6 per cent) of the total increase in the external debt. The increase in total external debt also reflected the impact of inclusion of cumulative SDR allocations to India by International Monetary Fund as a long-term debt liability in external debt statistics.
The debt-service ratio, i.e. the ratio of total debt service payments to current receipts worked out to 4.9 per cent during April-September 2009 as against 3.7 per cent for April-September 2008. The ratio of short-term external debt to foreign exchange reserves, which was 17.2 per cent at end-March 2009, came down 15.1 per cent at end-September 2009. The ratio of Government external debt to GDP has remained around 5.0 per cent in the last three years.
The Hindu Business Line : India's external debt rises by 8.1% at Sept-end
India one of the worlds largest debtor nations on earth Rupee News
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