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India's external debt declines by $2.3 billion in Q2 FY23The external debt to GDP ratio stood at 19.2% as at end-September 2022 as compared to 19.3% at end-June
PTI
Last Updated IST
Representative image. Credit: iStock photo
Representative image. Credit: iStock photo

India's external debt stood at $610.5 billion in the second quarter of 2022-23, down by $2.3 billion from end-June 2022, the finance ministry said on Thursday.

The external debt to GDP ratio stood 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 $610.5 billion, recording a decrease of $2.3 billion over its level at end-June 2022," it said.

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Valuation gains due to the appreciation of the US dollar vis-à-vis major currencies such as the euro, yen and Indian rupee was placed at $10.6 billion.

"Excluding the valuation effect, the increase in external debt would have been $8.3 billion instead of a decrease of $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 $478.7 billion, recording a fall of $8 billion over its level at end-June 2022, it said.

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.

US dollar denominated debt remained the largest component of India's external debt, with a share of 55.5 per cent at end-September 2022, followed by the Indian rupee (30.2 per cent), Special Drawing Rights (SDR) (6.1 per cent), yen (4.9 per cent), and the euro (2.6 per cent), it said.

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(Published 29 December 2022, 22:17 IST)