Stock of external debt falls after years

India's sovereign debt is much lower than that of other emerging economies

India’s stock of external debt declined for the first-time since 2001-02, to $471.9 billion at the end of March 2017, according to the Reserve Bank of India’s December 2017 Bulletin. 

The country’s external debt (medium to long-term) declined to 20.2 per cent of gross domestic product (GDP) at the end of March 2017, from 23.5 per cent at the end of March 2016. In March 1991, external debt was 28.7 per cent of GDP.

The main reason for contraction in non-resident deposits, says the report, was the “lumpy redemption” of FCNR(B)— Foreign Currency Non-Repatriable (bank)— deposits raised by lenders under a special