India’s External Debt at end-December 2015

India's External debt as at End-December 2015

Question: The quarterly statistics on India’s external debt for the quarters ending September and December every year is released by-
(a) Ministry of Information and Broadcasting
(b) Ministry of commerce and industry
(c) Ministry of Finance
(d) Reserve Bank of India
Ans (c)
Related facts:

  • On 31 March 2016, Department of Economic Affairs, Ministry of Finance has issued press release relates to India’s external debt at end-December 2015.
  • Department of Economic Affairs, Ministry of Finance has been compiling and releasing quarterly statistics on India’s external debt for the quarters ending September and December every year.
  • The figures for the first two quarters (March and June end) are compiled and issued by the Reserve Bank of India.
  • At end-December 2015, India’s external debt stock stood at US$ 480.2 billion, recording an increase of US$ 4.9 billion (1.0 per cent) over the level at end-March 2015.
  • The rise in external debt during the period was due to long-term external debt particularly commercial borrowings and NRI deposits.
  • However, on a sequential basis, total external debt at end December 2015 declined by US$ 1.2 billion from the end-September 2015 level.
  • At end-December 2015, long-term external debt accounted for 83.0 per cent of India’s total external debt, while the remaining (17 per cent) was short-term debt.
  • Long-term debt at end-December 2015 was US$ 398.6 billion, showing an increase of US$ 8.8 billion (2.3 per cent) over the level at end-March 2015.
  • Short-term external debt witnessed a decline of 4.6 per cent and stood at US$ 81.6 billion at end-December 2015.
  • Government (sovereign) external debt stood at US$ 90.7 billion at end-December 2015 while non-Government debt amounted to US$ 389.5 billion.
  • The share of Government (Sovereign) and non-Government debt in the total external debt was 18.9 per cent and 81.1 per cent respectively, at end-December 2015.
  • The share of US dollar denominated debt continued to be the highest in external debt stock at 57.6 per cent at end-December 2015, followed by the Indian rupee (28.7 per cent), SDR (5.8 per cent), Japanese yen (4.1 per cent), and euro (2.3 per cent).
  • The ratio of concessional debt to total external debt was 8.7 per cent at end-December 2015 (8.8 per cent at end-March 2015).
  • India’s foreign exchange reserves provided a cover of 73.0 per cent to the total external debt stock at end-December 2015 vis-à-vis 67.5 per cent at end-March 2015.
  • The ratio of short term external debt to foreign exchange reserves was 23.3 per cent at end-December 2015 as against 26.7 per cent at end-March 2015.

Reference:
http://finmin.nic.in/press_room/2016/Press_ExtDebt_QDec2015E.pdf
http://finmin.nic.in/the_ministry/dept_eco_affairs/economic_div/ExternalDebt_Dec15_H.pdf