India's external debt falls by $2.3 billion in Q2FY23

30 Dec 2022 , 12:13 PM

The Finance Ministry announced on Thursday that India’s external debt stood at USD 610.5 billion in the second quarter of 2022-23, down by USD 2.3 billion from end-June 2022. The external debt to GDP ratio registered at 19.2 per cent as at end-September 2022 as compared to 19.3 per cent at end-June.

‘At end-September 2022, India’s external debt was placed at USD 610.5 billion, registering a decrease of USD 2.3 billion over its level at end-June 2022,’ the Ministry said in a statement.

Accordingly, valuation gains due to the appreciation of the US dollar vis-a-vis major currencies such as the euro, yen and Indian rupee was placed at USD 10.6 billion.

‘Excluding the valuation effect, the rise in external debt would have been USD 8.3 billion instead of a decline of USD 2.3 billion at end-September 2022 over end- June 2022,’ it noted.

At end-September 2022, long-term debt (with original maturity of above one year) was placed at USD 478.7 billion, recording a fall of USD 8 billion over its level at end-June 2022, it further added.

On the other hand, the share of short-term debt (with an original maturity of up to one year) in total external debt increased to 21.6 per cent at end-September 2022 from 20.6 per cent in the previous quarter.

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