India's external debt stood at $ 485.6 billion at the end of March 2016, recording an increase of $ 10.6 billion year-on-year as compared to that of $475 billion as of March 2015, primarily on account of a rise in outstanding Non-Resident Indian deposits finance ministry said in its external debt report.
However, the increase in the magnitude of external debt was partly offset by valuation gain resulting from the appreciation of the US dollar vis-a-vis the Indian rupee and other major currencies. The external debt to GDP ratio stood at 23.7 per cent at end-March 2016, a shade lower than its level of 23.8 per cent at end-March 2015.
Component-wise, Commercial borrowings continued to be the largest component of external debt with a share of 37.3 per cent, followed by NRI deposits (26.1 per cent) and short-term trade credit 16.5 per cent. The share of short-term debt (original maturity) in total debt witnessed a decline over the corresponding quarter of the previous year. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves declined to 23.1 per cent as at end-March 2016 as compared to the 25.0 per cent as at end-March 2015. Debt service payments increased to 8.8 per cent of current receipts at end-March 2016 as compared to 7.6 per cent at end-March 2015.
The report said on residual maturity basis that the share of short-term debt residual maturity to India's forex reserves stood at 42.6 percent of the total external debt at end-March, compared with 38.2 percent at end-March 2015. For valuation effect, the report said the US dollar appreciated against the Indian rupee and other major currencies, was placed at US$ 5.9 billion. Excluding the valuation effect, the increase in external debt would have been higher by US$ 16.4 billion at end-March 2016 over the level at end-March 2015.