India's external debt surges to USD 571 billion

The official data showed on Thursday that external debt during the period under review breached to USD 571.3 billion

The external debt of India for the quarter ended June 2021 surged on a year-on-year as well as on linear basis.
 
The official data showed on Thursday that external debt during the period under review breached to USD 571.3 billion from USD 555.2 billion reported for the quarter ended June 2020.
 
On a linear basis, the quarter that ended on June 2021, India's external debt registered an surged of USD 1.6 billion over USD 569.7 billion that was reported for the quarter ended on March, 2021.
 
The Reserve Bank of India informed in a statement, "The external debt to GDP ratio declined to 20.2 percent at end-June, 2021 from 21.1 percent at end-March, 2021."
 
The statement also stated, "Valuation gain due to the appreciation of the US dollar vis-a-vis Indian rupee was placed at $1.7 billion. "
 
RBI further said that besides evaluation effect, the external debt would have surged by USD 3.3 billion rather of USD 1.6 billion at end of June, 2021 over the March, 2021 end.
 
As per to the statement of RBI, the commercial borrowings endured the biggest component of external debt, with a share of 37.4 percent, followed by non-resident deposits at 24.8 percent as well as the short-term trade credit 17.4 percent.

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