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The Centre dismissed apprehensions about India's external debt, saying out of India's total external liability of $620.7 billion, the Centre's share is just $130.8 billion, 21% of the total debt liability.
This also includes India's Special Drawing Right (SDR) allocation.
"The rumour doing the rounds that the central government is burdened with debt is baseless," a source told ET, adding that more than 40% of the debt is by non-financial corporations.
Officials clarified the debt position following concerns over India's external debt as $267 billion repayments are due in less than one year.
This caused apprehension that repayments would further erode India's foreign exchange reserves and cause more currency depreciation.
"This analysis is incomplete, incorrect, and it misses some basic facts," a source said.
Officials told ET that while it is true that payment of $267.7 billion of debt is due in less than a year, the Centre's share in this is just $7.7 billion or less than 3%, thus the debt level of the government is very much manageable and stands out safe.
RBI data reveals that central government debt declined from 52.2% of GDP at end of FY 2013-14 to about 51.8% of GDP at end of FY 2019-20. However, this went up again in FY21 by about 10% of GDP in a single year mainly on account of Covid-19.
India's gross public debt at 86.9% of the GDP is high but better compared to many other countries, officials said. China has a gross public debt of 300%, US 125٪, France has 112.6%, Canada 101.8%, Brazil 91.9% and the UK 87.8% of their respective GDPs.
External debt as a percentage of total debt has declined from about 6.4% in 2013-14 to 4.7% in 2021-22.
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This also includes India's Special Drawing Right (SDR) allocation.
"The rumour doing the rounds that the central government is burdened with debt is baseless," a source told ET, adding that more than 40% of the debt is by non-financial corporations.
Officials clarified the debt position following concerns over India's external debt as $267 billion repayments are due in less than one year.
This caused apprehension that repayments would further erode India's foreign exchange reserves and cause more currency depreciation.
"This analysis is incomplete, incorrect, and it misses some basic facts," a source said.
Officials told ET that while it is true that payment of $267.7 billion of debt is due in less than a year, the Centre's share in this is just $7.7 billion or less than 3%, thus the debt level of the government is very much manageable and stands out safe.
RBI data reveals that central government debt declined from 52.2% of GDP at end of FY 2013-14 to about 51.8% of GDP at end of FY 2019-20. However, this went up again in FY21 by about 10% of GDP in a single year mainly on account of Covid-19.
India's gross public debt at 86.9% of the GDP is high but better compared to many other countries, officials said. China has a gross public debt of 300%, US 125٪, France has 112.6%, Canada 101.8%, Brazil 91.9% and the UK 87.8% of their respective GDPs.
External debt as a percentage of total debt has declined from about 6.4% in 2013-14 to 4.7% in 2021-22.
Centre allays concerns over $620.7 billion external debt, says its share only 21%
RBI data reveals that central government debt declined from 52.2% of GDP at end of FY 2013-14 to about 51.8% of GDP at end of FY 2019-20. However, this went up again in FY21 by about 10% of GDP in a single year mainly on account of Covid-19.
' choras came from usual suspects who are not very aware on how finance works. Last year India paid back 255 billion USD outstanding loans and yet maintained a healthy forex reserves. Its not like you are shutting down the economy and paying from your reserve.
