Q. Consider the following statements regarding external debt of India:
1.The Status Report on India’s External Debt is released by department of revenue.
2.Rupee denominated debt is the largest component of external debt.
Which of the statements given above is/are correct?
Explanation: The Department of Economic Affairs in the Ministry of Finance released the 28th edition of the Status Report on India’s External Debt 2021-22 on 5 September.
- By the end of March 2022, India’s external debt had grown 8.2 percent to US$ 620.7 billion as compared to the previous year’s figure of US$ 573.7 billion.
- However, external debt as a ratio to GDP came down to 19.9 percent in March-end 2022 from 21.2 percent during the same period in 2021.
- Foreign currency reserves to external debt ratio have gone down marginally to 97.8 percent in March-end 2022 from 100.6 percent in the previous year.
- While 53.2 percent of external debt is denominated in the US dollar, Indian rupee-denominated debt at 31.2 percent of the total is the second largest.
- The volume of long-term debt has been estimated at US$ 499.1 billion–80.4 percent of the total. The short-term debt accounted for 19.6 percent of the total debt burden, at US$ 121.7 billion.
Source: TMH Ramesh Singh