India added $4.7 billion to its external debt stock in the three-month period ending June to take the total liabilities to outsiders to $629.1 billion, a statement by the central bank on Thursday showed.
Valuation effect due to appreciation of the US dollar against other major currencies amounted to $ 3.1 billion.
“Excluding the valuation effect, the external debt would have increased by $ 7.8 billion instead of $4.7 billion at the end of June over end of March,” the statement by the Reserve Bank of India added.
The hardening of interest rates in the advanced economies where much of the debt is raised led to an increase ratio of debt service obligation to 6.8% of the current receipts by June-end as against 5.3% in the quarter ending March.
As a percentage of the Gross Domestic Product (GDP) of the country declined to 18.6% from 18.8%. Of the total debt, the private borrowing accounted for $496.3 billion while the government’s share was $132.8 billion.
Short-term debt on residual maturity basis constituted 42.8% of the total external debt as on June-end as against 44% on end-March.
US dollar denominated debt accounted for 54.4% of the total and rupee denominated debt’s share was 30.4%. Special Drawing Rights (5.9%, Yen (5.7%) and Euro (3%) are other means of raising debt.
Loans remained the largest component of external debt, with a share of 32.9%, followed by currency and deposits 22.9%, trade credit and advances 19.0%and debt securities 16.8 %.