Tribune News Service
New Delhi, September 29
India’s external debt has risen by 7.1% to $617.1 billion in June 2022 as against $575.3 billion during the corresponding period last year, according to data released by the Reserve Bank of India (RBI).
Compared to March 2022, when the external debt had stood at $619 billion, there has been a marginal drop in external debt in June 2022, which was $617 billion. In another statement, the government said there is no overshooting of its borrowing programme for the current fiscal.
According to the RBI, US dollar-denominated debt was the largest component of India’s external debt, accounting for 54.7% at the end of June. This was followed by debt denominated in the Indian rupee (30.4%), SDR or special drawing rights (6.3%), yen (5.1%), and euro (2.8%).
Short-term debt on residual maturity basis was 45.4% of total external debt at end-June 2022 as against 43.2% at end-March 2022. It was 47.6% of foreign exchange reserves.
Loans were the largest component of external debt, with a share of 31.1%. They were followed by currency and deposits (22.3%), trade credit and advances (20.6%) and debt securities (18%).
The government said, in consultation with the RBI, it has finalised its borrowing programme for the second half of the current fiscal. Out of the gross market borrowing of Rs 14.31 lakh crore, the government has decided to borrow Rs 14.21 lakh crore. Having already borrowed about 59% of the amount, the balance Rs 5.92 lakh crore is planned to be borrowed through dated securities, including Rs 16,000 crore through issuance of Sovereign Green Bonds as per the announcement made in the Union Budget 2022-23.
The gross market borrowing shall be completed through 20 weekly auctions and will be spread over 2, 5, 7, 10, 14, 30 and 40-year securities.
CAD widens to 2.8% of GDP in Q1
- The current account deficit (CAD) widened to 2.8% of GDP at $23.9 billion in the first quarter of the current financial year, mainly on account of a higher trade deficit
- The current account surplus stood at $6.6 billion, equivalent to 0.9% of GDP in the first quarter (April-June) of 2021-22
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