India's external debt grew by 8.2 pc to over USD 620 bn till March 2022

India’s external debt grew by 8.2 percent to over 620 billion US dollar at the end of March this year.

Finance Ministry's Department of Economic Affairs has released the 28th edition of the Status Report on India’s External Debt 2021-22.  According to it, India’s external debt was over 573 billion dollar at the end of March, last year.

Commercial borrowings, Non-resident Indians (NRIs) deposits, short-term trade credit and multilateral loans together accounted for 90 per cent of the total external debt. According to reports, the External debt as a ratio to Gross domestic product (GDP) fell



marginally to 19.9 per cent as of March this year, from 21.2 per cent a year ago.

Finance Minister Nirmala Sitharaman said, India's external debt continues to be sustainable and prudently managed. She said, the long-term debt constitutes the bulk, while short-term debt is basically incurred to finance imports enhancing the stability aspects of the total external debt. 

Mrs Sitharaman said, India's external debt position compares well from a cross country perspective. She said, this testifies to the prudently calibrated external debt policy pursued by the government.