External debt to GDP ratio eased to 23.7% end March 2016 from 23.8% end March 2015
India's external debt at end-March 2016 witnessed an increase of 2.2% to US$ 485.6 billion at end March 2016 over its level at end-March 2015, primarily on account of a rise in outstanding NRI deposits. Furthermore, the increase in the magnitude of external debt was partly offset by valuation gain resulting from the appreciation of the US dollar vis-a-vis the Indian rupee and other major currencies. The external debt to GDP ratio stood at 23.7% at end-March 2016, a shade lower than its level of 23.8% at end-March 2015.Valuation gain, due to appreciation of the US dollar against the Indian rupee and other major currencies, was placed at US$ 5.9 billion. Excluding the valuation effect, the increase in external debt would have been higher by US$ 16.4 billion at end-March 2016 over the level at end-March 2015.
Commercial borrowings continued to be the largest component of external debt with a share of 37.3%, followed by NRI deposits (26.1%) and short-term trade credit (16.5%).
The share of short-term debt (original maturity) in total debt witnessed a decline over the corresponding quarter of the previous year. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves declined to 23.1% as at end-March 2016 (25.0% as at end-March 2015).
On residual maturity basis, short-term debt constituted about 42.6% of total external debt at end-March 2016 (38.2% at end-March 2015) and stood at 57.4% of total foreign exchange reserves (53.2% at end-March 2015) (Table 2). The rise in short-term debt (residual maturity) mainly reflects payments due on account of maturing of FCNR(B) deposits mobilised under the special swap scheme in 2013.
US dollar denominated debt continued to be the largest component of India's external debt with a share of 57.1% at end-March 2016, followed by Indian rupee (28.9%), SDR (5.8%), Japanese Yen (4.4%) and Euro (2.5%).
Across borrower categories, the outstanding debt of Government as well as non-Government debt increased and their shares in total external debt were 19.2% and 80.8%, respectively, at end-March 2016.
Debt service payments increased to 8.8% of current receipts at end-March 2016 as compared to 7.6% at end-March 2015.
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