India’s external debt increased by $39.7 billion to $663.8 billion at end-March 2024, according to the Reserve Bank of India (RBI). Despite the rise, the external debt to GDP ratio fell to 18.7% from 19.0% at end-March 2023. Excluding the valuation effect caused by the appreciation of the US dollar against the Indian rupee and other major currencies, the external debt would have increased by $48.4 billion. The valuation effect was calculated at $8.7 billion.
Debt Composition
- US Dollar-Denominated Debt: Largest component, comprising 53.8% of the total.
- Indian Rupee-Denominated Debt: 31.5%.
- Other Currencies: Yen (5.8%), SDR (5.4%), and Euro (2.8%).
Sectoral Breakdown
- Non-Financial Corporations: Highest share at 37.4% of total external debt.
- General Government: 22.4%.
- Households and Nonprofit Institutions: Declined by 16.5% year-on-year.
Types of Debt
- Loans: Largest component at 33.4%.
- Currency and Deposits: 23.3%.
- Trade Credit and Advances: 17.9%.
- Debt Securities: 17.3%.