India's external debt rises 2.1 pc to USD 570 billion

India's external debt rose modestly by 2.1 per cent year-on-year to USD 570 billion as of March-end 2021, notwithstanding the COVID-19 pandemic, according to the finance ministry. External debt to GDP ratio rose marginally to 21.1 per cent from 20.6 per cent as at end-March 2020. Reserves to external debt ratio, however, increased to 101.2 per cent from 85.6 per cent during the same period, thereby consolidating the country's position as a net creditor to the world, as per the status report on India's external debt released by the ministry.The sovereign debt at USD 107.2 billion rose higher by 6.2 per cent over its level a year ago, mainly because of an increase in external assistance more than compensating the fall in FPI investment in government securities (G-Secs), it said.
The augmented external assistance reflected larger disbursement of COVID-19 loans from multilateral agencies during 2020-21.The non-sovereign debt, on the other hand, grew 1.2 per cent on a yearly basis to USD 462.8 billion.Commercial borrowings, NRI deposits and short-term trade credit account for 95 per cent of the non-sovereign debt, Commercial borrowings, NRI deposits and short-term trade credit account for 95 per cent of the non-sovereign debt.While NRI deposits grew 8.7 per cent to USD 141.9 billion, commercial borrowings at USD 197.0 billion and short-term trade credit at USD 97.3 billion shrank by 0.4 per cent and 4.1 per cent, respectively. At March-end 2021, long-term debt (with original maturity of above one year) was at USD 468.9 billion, recording an increase of USD 17.3 billion over the year-ago level. 

While NRI deposits grew 8.7 per cent to USD 141.9 billion, commercial borrowings at USD 197.0 billion and short-term trade credit at USD 97.3 billion shrank by 0.4 per cent and 4.1 per cent, respectively. At March-end 2021, long-term debt (with original maturity of above one year) was at USD 468.9 billion, recording an increase of USD 17.3 billion over the year-ago level.