India’s external debt rises $10.6 billion to $485.6 billion in March 2016
RBI data shows share of commercial borrowings remained the largest component of external debt with share of 37.3%, followed by NRI deposits at 26.1%
Photo: Ramesh Pathania/Mint
Mumbai: India’s external debt stood at $485.6 billion at the end of March 2016, recording an increase of $10.6 billion year-on-year, primarily on account of a rise in outstanding non-residential Indian (NRI) deposits, the Reserve Bank of India (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 rupee and other major currencies, the central bank said in a statement.
The external debt to gross domestic product (GDP) ratio stood at 23.7% at March-end 2016, a shade lower than its level of 23.8% at March-end 2015, it added.
The RBI said on residual maturity basis, short-term debt constituted about 42.6% of total external debt at March-end 2016 compared with 38.2% at March-end 2015. As per RBI data, the share of commercial borrowings continued to be the largest component of external debt with a share of 37.3%, followed by NRI deposits (26.1%) and short-term trade credit (16.5%).
The ratio of short-term debt (original maturity) to foreign exchange reserves declined 23.1% at March-end 2016 compared to 25% at March-end 2015.
Debt service payments increased to 8.8% of current receipts at March-end 2016 as compared to 7.6% at March-end 2015, the RBI said.
Meanwhile, with a view to rationalizing and expediting the process of giving approval, the central bank said it has been decided that external commercial borrowing proposals received in the RBI above a certain threshold limit (re-fixed from time to time) be placed before the empowered committee.
“The Reserve Bank of India will take a final decision in the cases taking into account the recommendation of the empowered committee,” it said.