The salient features of the Report are:
At end-September 2016, India’s external debt stock stood at $ 484.3 billion, recording a decline of $ 0.8 billion (0.2%) over the level at end-March 2016. The fall in external debt during the period was due to commercial borrowings and short term external debt. However, on a sequential basis, total external debt at end-September 2016 increased by $ 4,768 million from the end-June 2016 level.
The maturity pattern of India’s external debt indicates dominance of long-term borrowings. At end-September 2016, long-term external debt accounted for 83.2% of India’s total external debt, while the remaining (16.8%) was short-term external debt.
Valuation loss (depreciation of US dollar against the Indian rupee and most other major currencies) was placed at $ 1.0 billion. This implies that excluding the valuation effect, the decrease in debt would have been higher by $ 1.8 billion at end-September 2016 over the end-March 2016 level.
The shares of Government (Sovereign) and non-Government debt in the total external debt were 20.1% and 79.9% respectively, at end-September 2016.
US dollar denominated debt accounted for 55.6 per cent of India’s total external debt at end-September 2016, followed by Indian rupee (30.1%), SDR (5.8%), Japanese Yen (4.8%) Pound Sterling (0.7%), Euro (2.4%) and others (0.6%).
The ratio of short-term external debt by original maturity to foreign exchange reserves stood at 21.8% at end-September 2016 lower than the 22.6% at end June 2016 and 23.1% at end-March 2016.
On a residual maturity basis, short-term debt constituted 42.0 per cent of total external debt at end-September 2016 (42.4% at end-June 2016 and 42.6% at end-March 2016) and stood at 54.7% of total foreign exchange reserves (55.9% at end-June 2016 and 57.4% at end-March 2016).
The ratio of concessional debt to total external debt was 9.4% at end-September 2016, same as at end-June 2016 and a marginal increase from the 9.0% at end-March 2016.