Under BJP Regime, India’s External Debt Rises To $571 Billion

India’s external debt for the quarter ended June 2021 increased on a year-on-year as well as on sequential basis, official data showed last week. The external debt during the period under review rose to $571.3 billion from $555.2 billion reported for the quarter ended June 2020.

On a sequential basis, at end-June 2021, the external debt recorded an increase of $1.6 billion over $569.7 billion reported for end-March 2021 period. “The external debt to GDP ratio declined to 20.2 per cent at end-June 2021 from 21.1 per cent at end-March 2021,” the RBI said in a statement.

“Valuation gain due to the appreciation of the US dollar vis-a-vis Indian rupee was placed at $1.7 billion. Excluding the valuation effect, external debt would have increased by $3.3 billion instead of $1.6 billion at end-June 2021 over end-March 2021.”

According to the RBI, commercial borrowings remained the largest component of external debt, with a share of 37.4 per cent, followed by non-resident deposits at 24.8 per cent, and short-term trade credit 17.4 per cent. “At end-June 2021, long-term debt (with original maturity of above one year) was placed at $468.8 billion, recording an increase of $0.2 billion over its level at end-March 2021.” (IANS)

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