InvestorQ : Is it true that India’s external debt has gone up sharply?
Rutuja Nigam made post

Is it true that India’s external debt has gone up sharply?

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4 weeks ago
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According to a note put by the RBI on its website, India's external debt grew by 8.2% to a level of $620.7 billion as of March 2022. However, the RBI has underlined that things are well in control since just about 53.2% of this debt is denominated in dollars while 31.2% is denominated in INR.

Also, if one looks at the ratio of external debt to GDP, it was fairly comfortable at 19.9% by comparable standards. Even the ratio of forex reserves to external debt stands at 97.8% which is very competitive. Long term debt with residual maturity of more than 1 year accounted for over 80% of the total external debt. Also, the short term debt is predominantly trade credit for financing imports, which is normally a back-to-back sort of funding and low on risk. Sovereign debt rose 17.1% at $130.7 billion.

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