India's external debt rises to over $557 billion for June quarter

RBI attributes the rise to valuation losses that resulted from the depreciation of the US dollar against Indian rupee and other major currencies.
Image for representational purpose only.
Image for representational purpose only.

MUMBAI: India's external debt for the quarter-ended June 2019 rose to $557.4 billion, from $543.3 billion during the previous quarter and $513.1 billion in the year-ago period.

According to the Reserve Bank of India's external debt statistics released with a lag of one quarter, the country's debt witnessed an increase of 2.6 per cent over its level at end-March 2019, primarily on account of an increase in commercial borrowings, non-resident deposits and short-term trade credit.

"The increase in external debt was also contributed by valuation losses resulting from the depreciation of the US dollar against Indian rupee and other major currencies," the RBI said in a statement.

"The external debt to GDP ratio remained at 19.8 per cent at end-June 2019, the same as its level at end-March 2019."

As per the data, valuation losses due to the depreciation of the US dollar vis-a-vis Indian rupee and other major currencies were placed at $1.7 billion.

Besides, commercial borrowings remained the largest component of external debt, with a share of 38.4 per cent, followed by non-resident deposits (24 per cent) and short-term trade credit (18.7 per cent).

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