The external debt to GDP ratio declined to 18.7 per cent at end-March 2024 from 19.0 per cent at end-March 2023, the RBI said.
The Central Bank said that if the valuation effect were excluded, external debt would have increased by $48.4 billion instead of $ 39.7 billion. Valuation efects are the changed in value of assets held abroad with regard to the value of domestic assets held by foreign investors
“Valuation effect due to the appreciation of the US dollar vis-à-vis the Indian rupee and other major currencies such as the yen, the euro and SDR amounted to $8.7 billion. Excluding the valuation effect, external debt would have increased by $48.4 billion instead of $39.7 billion at end-March 2024 over end-March 2023,” RBI said in a statement.
“Loans remained the largest component of external debt, with a share of 33.4 per cent, followed by currency and deposits (23.3 per cent), trade credit and advances (17.9 per cent) and debt securities (17.3 per cent),” RBI said.
First Published: Jun 25 2024 | 7:23 PM IST
