The country’s external debt has increased by $39.7 billion in the past fiscal to $663.8 billion over the previous fiscal ending March 2023, but the external debt to GDP ratio declined marginally to 18.7 per cent in FY24 from 19 per cent in FY23 due to increase in the size of the GDP, show the RBI data.
If we compare the external debt to the Forex Reserves, the latter is very close at $653 billion, after losing close to $3 billion last week when it had stood at $656 billion.
“At end-March 2024, the country’s external debt was placed at $663.8 billion, an increase of $39.7 billion over its level at end-March 2023. The external debt to GDP ratio declined to 18.7 per cent at end-March 2024 from 19 per cent at end-March 2023,” the central bank said on Tuesday.
Had it not been for the valuation effect due to the appreciation of the US dollar vis-à-vis the rupee and other major currencies such as the Japanese yen, the euro the the Biriths pound which amounted to $8.7 billion, external debt would have increased by $48.4 billion instead of $39.7 billion, the central bank said.
Of the total debt, long-term debt (with original maturity of above one year) stood at $541.2 billion, up $45.6 billion over March 2023, while the share of short-term debt (with an original maturity of up to one year) in total external debt declined to 18.5 per cent as of March 2024 from 20.6 per cent in March 2023. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves declined to 19 per cent in March 2024 from 22.2 per cent in March 2023, the data show.