India's external debt at $610 billion in Q2 FY23; declines by $2.3 billion

[kaykay]

India's external debt at $610 billion in Q2 FY23; declines by $2.3 billion

India's external debt stood at USD 610.5 billion in the second quarter of 2022-23, down by USD 2.3 billion from end-June 2022, the finance ministry said on Thursday.

wap.business-standard.com

India's external debt stood at USD 610.5 billion in the second quarter of 2022-23, down by USD 2.3 billion from end-June 2022, the finance ministry said on Thursday.

The external debt to GDP ratio stood at 19.2 per cent as at end-September 2022 as compared to 19.3 per cent at end-June.

"At end-September 2022, India's external debt was placed at USD 610.5 billion, recording a decrease of USD 2.3 billion over its level at end-June 2022," it said.

Valuation gains due to the appreciation of the US dollar vis--vis major currencies such as the euro, yen and Indian rupee was placed at USD 10.6 billion.

"Excluding the valuation effect, the increase in external debt would have been USD 8.3 billion instead of a decrease of USD 2.3 billion at end-September 2022 over end- June 2022," it noted.

At end-September 2022, long-term debt (with original maturity of above one year) was placed at USD 478.7 billion, recording a fall of USD 8 billion over its level at end-June 2022, it said.

On the other hand, the share of short-term debt (with an original maturity of up to one year) in total external debt increased to 21.6 per cent at end-September 2022 from 20.6 per cent in the previous quarter.

US dollar denominated debt remained the largest component of India's external debt, with a share of 55.5 per cent at end-September 2022, followed by the Indian rupee (30.2 per cent), Special Drawing Rights (SDR) (6.1 per cent), yen (4.9 per cent), and the euro (2.6 per cent), it said

 

[Indos]

Of course external debt is decreasing since foreign investors sold their Emerging countries bonds due to US The Fed tightening policy. Those foreign debt converted into domestic debt as Indian Central Banks buy that, no wonder there is decrease of USD reserve in India this year

 

[pikkuboss]

Of course external debt is decreasing since foreign investors sold their Emerging countries bonds due to US The Fed tightening policy. Those foreign debt converted into domestic debt as Indian Central Banks buy that, no wonder there is decrease of USD reserve in India this year

30% of our external debt is in rupee, 6% SDR and 80% of total debt are long term. Our reserves are $562 billion. We are far from any crisis. We are also a creditor to small countries.

 

[Indos]

30% of our external debt is in rupee, 6% SDR and 80% of total debt are long term. Our reserves are $562 billion. We are far from any crisis. We are also a creditor to small countries.

Of course India is in good position relative to other countries, I would say India is save this year. Next year challenge will likely be the same until first semester 2023 since The Fed is likely still raising interest rate until the end of first semester, despite it could be ended in the beginning of 2023 second quarter as well.

Export decline will likely happen next year despite China factor can potentially offset it particularly the offset could happen in Asia Pasific region countries that has strong trade relation with China.

I believe India economy will be just fine, the question is now only about how fast Indian economy could grow next year

 

[pikkuboss]

So long as India continues to
Import oil, the balance of trade will always be negative and the external debt will increase.

So long as India's forex reserves are close to external debt, it will be just fine. We can bring down imports by forceful measures like Pakistan is doing right now, but that will hamper growth and actual development.

 

[Abdul Rehman Majeed]

India's external debt at $610 billion in Q2 FY23; declines by $2.3 billion

India's external debt stood at USD 610.5 billion in the second quarter of 2022-23, down by USD 2.3 billion from end-June 2022, the finance ministry said on Thursday.

wap.business-standard.com

India's external debt stood at USD 610.5 billion in the second quarter of 2022-23, down by USD 2.3 billion from end-June 2022, the finance ministry said on Thursday.

The external debt to GDP ratio stood at 19.2 per cent as at end-September 2022 as compared to 19.3 per cent at end-June.

"At end-September 2022, India's external debt was placed at USD 610.5 billion, recording a decrease of USD 2.3 billion over its level at end-June 2022," it said.

Valuation gains due to the appreciation of the US dollar vis--vis major currencies such as the euro, yen and Indian rupee was placed at USD 10.6 billion.

"Excluding the valuation effect, the increase in external debt would have been USD 8.3 billion instead of a decrease of USD 2.3 billion at end-September 2022 over end- June 2022," it noted.

At end-September 2022, long-term debt (with original maturity of above one year) was placed at USD 478.7 billion, recording a fall of USD 8 billion over its level at end-June 2022, it said.

On the other hand, the share of short-term debt (with an original maturity of up to one year) in total external debt increased to 21.6 per cent at end-September 2022 from 20.6 per cent in the previous quarter.

US dollar denominated debt remained the largest component of India's external debt, with a share of 55.5 per cent at end-September 2022, followed by the Indian rupee (30.2 per cent), Special Drawing Rights (SDR) (6.1 per cent), yen (4.9 per cent), and the euro (2.6 per cent), it said

2 billion reduction out of 610 billion is an achievement?

 

[Krptonite]

2 billion reduction out of 610 billion is an achievement?

It is when you consider that many have to run helter-skelter just to seek aid for borrowing one.

Big fan of your work btw, keep up the lulzz.

 

[kaykay]

2 billion reduction out of 610 billion is an achievement?

Point is that our external debt to GDP ratio is being reduced slowly. It was 23.9% in 2014 and now Its at 19.2%.

 

[Kuru]

2 billion reduction out of 610 billion is an achievement?

If you had saved $2B, you wouldn’t have to go to IMF for $1.2B, you know.