Mumbai, Sep 30 – 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 on Thursday.
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.”
India’s foreign exchange reserves fell by $997 million during the week ended September 24.
The Reserve Bank of India’s (RBI) forex reserves declined to $638.646 billion from $639.642 billion reported for the week ended September 17.
India’s forex reserves comprise foreign currency assets (FCAs), gold reserves, SDRs, and the country’s reserve position with the IMF.
On a weekly basis, FCAs, the largest component of the forex reserves, edged lower by $1.255 billion to $576.731 billion.
However, the value of the country’s gold reserves rose by $327 million to $37.430 billion.
The SDR value fell by $55 million to $19.379 billion.
In addition, the country’s reserve position with the IMF inched lower by $13 million to $5.106 billion.