India’s external debt stood at $ 554.5 billion at the end of June, falling $ 3.9 billion from its level at the end of March 2020, the RBI said on Wednesday.

In addition, the ratio of external debt to GDP rose to 21.8% at the end of June 2020, from 20.6% as of March 31.

The loss in valuation due to the depreciation of the US dollar against major currencies such as the euro, yen and SDR amounted to $ 0.7 billion.

“Excluding the valuation effect, the decline in external debt would have been $ 4.5 billion instead of $ 3.9 billion at the end of June 2020 compared to the end of March 2020,” said the central bank.

According to the data, commercial borrowing remained the largest component of external debt, with a share of 38.1 percent, followed by non-resident deposits (23.9 percent) and short-term trade credit. (18.2 percent).

As of June 30, long-term debt (with an original maturity of over one year) stood at $ 449.5 billion, down $ 2 billion from its level at the end of March, said the central bank.

The share of short-term debt in total external debt fell to 18.9% at June 30 from 19.1% at the end of March.

The Reserve Bank said US dollar-denominated debt remained the main component of India’s external debt, with a share of 53.9% at the end of June, followed by the Indian rupee (31.6%) , the yen (5.7%), the SDR (4.5%) and the euro (3.5%).

Classification by instrument shows that loans constituted the most important component of external debt, with a share of 35.4%, followed by foreign exchange and deposits, trade credits and advances, and debt securities.

In addition, the classification by borrower shows that the outstanding debt of the public and non-public sectors decreased at the end of June 2020.

The RBI also said debt service (principal repayments plus interest payments) had increased to 8.1% of current revenue at end-June 2020 from 6.5% at end-March 2020, reflecting current revenue. weaker.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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