India's External Debt : A Status Report 2023-24

INDIA’S EXTERNAL DEBT A Status Report 2023-24 GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS ECONOMIC DIVISION EXTERNAL DEBT MANAGEMENT UNIT www.finmin.nic.in September 2024 iTABLE OF CONTENTS Abbreviations .......................................................................................................................... viii Executive Summary ............................................................................................................... xii Key Data Trends ................................................................................................................... xiv Chapter 1: India’s External Debt – An Overview ................................................................ 1 Overview ............................................................................................................................ 1 Salient Ratios ...................................................................................................................... 3 Chapter 2: Classification of India’s External Debt .............................................................. 6 Debtor Institutional Sector-wise Classification .................................................................. 7 General Government ................................................................................................. 8 Central Bank .............................................................................................................. 9 The Deposit-taking Corporations, except the Central Bank ...................................... 9 Other Sectors ........................................................................................................... 10 Creditor Sector ................................................................................................................. 10 Official Creditors (Multilateral and Bilateral) ......................................................... 12 Debt from International Monetary Fund (SDR) ...................................................... 12 Trade Credits ........................................................................................................... 13 Commercial Borrowing ........................................................................................... 14 Non-Resident Indians (NRI) Deposits .................................................................... 15 Rupee Debt .............................................................................................................. 15 Maturity-wise Classification ............................................................................................ 15 Short-Term Debt by Original Maturity ................................................................... 16 Short-Term Debt by Residual Maturity ................................................................... 17 Currency-wise Classification ........................................................................................... 19 Instrument-wise Classification ......................................................................................... 21 Special Drawing Rights (SDRs) .............................................................................. 21 Currency and Deposits ............................................................................................ 22 Loans ....................................................................................................................... 22 Trade Credits and Advances .................................................................................... 23 Debt Securities ........................................................................................................ 23 Direct Investment: Inter-Company Lending ........................................................... 23 Concessionality-wise Classification ................................................................................. 24 iiiChapter 3: Sovereign External Debt .................................................................................... 26 Introduction ...................................................................................................................... 26 Composition of Sovereign External Debt ........................................................................ 27 External Assistance ................................................................................................. 28 Other Government Debt (OGD) .............................................................................. 32 Currency Composition ..................................................................................................... 33 Sovereign External Debt Service Payments ..................................................................... 34 Contingent Liability ......................................................................................................... 36 Projections of Sovereign External Debt Service Payments .............................................. 37 Conclusion ........................................................................................................................ 39 Chapter 4: India’s External Debt Service Payments .......................................................... 40 Introduction ...................................................................................................................... 40 India’s External Debt Service Payments .......................................................................... 40 Terms of Borrowings ........................................................................................................ 44 Implicit Interest Rate ............................................................................................... 44 Average Terms of New Commitments .................................................................... 45 Projections of External Debt Service Payments ............................................................... 46 Chapter 5: India’s External Debt Position – A Cross-Country Perspective .................... 48 Global External Debt ........................................................................................................ 48 Global External Debt: Maturity-wise ...................................................................... 51 Global Stock of External Debt: Sector-wise ........................................................... 51 External Debt of EMDEs ................................................................................................. 52 External Debt of LMICs ................................................................................................... 54 External Debt to GNI .............................................................................................. 55 Share of Short-Term Debt ....................................................................................... 55 Forex Reserves to External Debt ............................................................................. 56 External Debt to Exports ......................................................................................... 56 Present Value of External Debt ........................................................................................ 56 Conclusion ........................................................................................................................ 57 Annexures ................................................................................................................................ 58 TABLES Table 2.1: India’s External Debt: Debtor-wise .......................................................................... 7 ivTable 2.2: India’s External Debt: Creditor-wise ...................................................................... 11 Table 2.3: Residual Maturity of External Debt Outstanding as of end-March 2024 ............... 19 Table 3.1: Projections of Sovereign External Debt Service Payments: Creditor-wise ............ 38 Table 4.1: Disbursements and Principal Repayments under Short-Term Debt ....................... 44 Table 4.2: Implicit Interest Rates on India’s External Debt – Source-wise ............................. 45 Table 4.3: Average Terms of New Commitments for India .................................................... 45 Table 4.4: Projections of External Debt Service Payments – Creditor-wise ........................... 46 Table 5.1: Gross External Debt Stock of Top-20 Debtor Countries ....................................... 50 Table 5.2: Gross External Debt Stock of EMDEs ................................................................... 53 FIGURES Figure 1.1: Stock of India’s External Debt – US Dollar and Indian Rupees (at end-March) .... 2 Figure 1.2: External Debt and Valuation Effect (at end-March) ............................................... 3 Figure 1.3: India’s External Debt and GDP (at end-March) ...................................................... 3 Figure 1.4: India’s Short-Term External Debt (at end-March) .................................................. 4 Figure 1.5: Foreign Exchange Reserves to External Debt (at end-March) ................................ 5 Figure 2.1: External Debt of India: Institutional Sector-wise (at end-March) ........................... 8 Figure 2.2: India’s External Debt: Sovereign and Non-Sovereign (at end-March) ................... 9 Figure 2.3: Share of External Debt as at end-March 2024: Creditor-wise .............................. 12 Figure 2.4: Long-Term and Short-Term Trade Credit (at end-March) .................................... 13 Figure 2.5: Imports and Trade Credit (at end-March) ............................................................. 14 Figure 2.6: External Commercial Borrowings: Component-wise (at end-March) .................. 15 Figure 2.7: India’s External Debt: Maturity-wise (at end-March) ........................................... 16 Figure 2.8: Share of Long-Term and Short-Term Debt (at end-March) .................................. 17 Figure 2.9: India’s External Debt at end-March 2024: Residual Maturity-wise ..................... 18 Figure 2.10: Composition of Short-Term Debt by Residual Maturity: Sector-wise (at end- March 2024) ........................................................................................................... 18 Figure 2.11: Share of Foreign Currency Debt in Total External Debt (%) during 2011 to 2024 (at end-March) ....................................................................................................... 20 Figure 2.12: India’s External Debt at end-March 2024: Currency Composition (% share) of total External Debt ................................................................................................. 20 Figure 2.13: India’s External Debt as at end-March 2024: Instrument-wise (per cent of total) ................................................................................................................................ 21 Figure 2.14: India’s External Debt: Concessional and Non-Concessional (at end-March) ..... 24 vFigure 3.1: Sovereign External Debt: Stock and Share (at end-March) .................................. 27 Figure 3.2: Components of Sovereign External Debt (at end-March 2024) ............................ 28 Figure 3.3: Composition of Sovereign External Debt under External Assistance (at end- March) .................................................................................................................... 28 Figure 3.4: External Assistance vs Other Government Debt (at end-March) .......................... 29 Figure 3.5: Composition of Multilateral Debt as at end-March 2023 and 2024 ...................... 30 Figure 3.6: Relative Contribution of Different Multilateral Organisations in Growth of Debt under External Assistance (at end-March) ............................................................. 30 Figure 3.7: Composition (% Share) of Bilateral Debt at end-March 2023 and 2024 .............. 31 Figure 3.8: Composition of Other Government Debt at end-March 2023 and 2024 ............... 32 Figure 3.9: Ownership of Government-Dated Securities by FIIs ............................................ 33 Figure 3.10: Currency Composition (% share) of Sovereign External Debt (at end-March) .. 34 Figure 3.11: Multilateral Debt Service Payments .................................................................... 35 Figure 3.12: Bilateral Debt Service Payments ......................................................................... 35 Figure 3.13: Government Debt and Government Guaranteed Debt (at end-March) ............... 36 Figure 3.14: Government Guaranteed External Debt of Debtor Sectors (at end-March) ........ 37 Figure 4.1: External Debt Service Payments – Total, Principal and Interest .......................... 41 Figure 4.2: External Debt Service Payments and Debt Service Ratio ..................................... 42 Figure 4.3: Composition of India’s External Debt Service Payments ..................................... 43 Figure 5.1: Global External Debt (at end-December) .............................................................. 49 Figure 5.2: External Debt to GDP Ratio of Top-20 Debtor Countries (at end-December) ..... 51 Figure 5.3: External Debt of Top-20 Debtors as of end-December 2023: Sector-wise ........... 52 Figure 5.4: Selected External Debt Sustainability Indicators: LMICs (at end-December) ..... 54 Figure 5.5: Select External Debt Indicators at end-December 2022: LMICs vs India ............ 55 Figure 5.6: Select Indicators of Present Value of External Debt – Top 20 LMIC Debtor Countries at end-December 2022........................................................................... 57 ANNEXURES Annexure I: External Debt: Definitions, Concepts and Dissemination of Data ...................... 58 Annexure II: Key External Debt Indicators ............................................................................. 65 Annexure III: India’s External Debt Outstanding (Annual) – Rupees .................................... 67 Annexure IV: India’s External Debt Outstanding (Annual) – US Dollar ................................ 70 Annexure V: India’s External Debt Outstanding (Quarterly) – Rupees .................................. 73 Annexure VI: India’s External Debt Outstanding (Quarterly) – US Dollar ............................ 76 viAnnexure VII: External Debt by Borrower Classification ...................................................... 79 Annexure VIII: Instrument-wise Classification of External Debt Stock at end-March 2024.. 80 Annexure IX: Composition of External Debt: Currency-wise ................................................ 82 Annexure X: Short-Term Debt by Residual Maturity ............................................................. 83 Annexure XI: India’s External Debt Service Payments – Source-wise ................................... 84 Annexure XII: India’s External Debt Service Payments by Creditor Category ...................... 85 Annexure XIII: International Comparison of Top Low and Middle-Income Debtor Countries, 2022........................................................................................................................ 86 Annexure XIV: Gross External Debt Position of Top Twenty Developing Countries ............ 87 Annexure XV: External Debt Position of Top 20 Debtor Countries in the World .................. 88 Annexure XVI: Creditor-wise Sovereign External Debt – Rupees ......................................... 90 Annexure XVII: Creditor-wise Sovereign External Debt – US Dollar ................................... 92 Annexure XVIII: Currency Composition of Sovereign External Debt ................................... 93 Annexure XIX: Sovereign External Debt Service Payments .................................................. 94 Annexure XX: Central Government Guarantees on External Debt ......................................... 95 Annexure XXI: Creditor-wise External Debt Service Payments on Government Account under External Assistance ...................................................................................... 96 Annexure XXII: Projections of External Debt Service Payments on Sovereign Debt – Creditor-wise.......................................................................................................... 97 Annexure XXIII: External Commercial Borrowings ............................................................... 98 viiABBREVIATION A ADB - Asian Development Bank AEs - Advanced Economies AIIB - Asian Infrastructure Investment Bank B BOP - Balance of Payments BPM - Balance of Payments Manual BRICS - Brazil, Russia, India, China and South Africa C CAAA - Controller of Aid, Audit & Accounts CB - Central Bank CBs - Commercial Borrowings CCIL - Clearing Corporation of India Limited CRR - Cash Reserve Ratio CS-DRMS - Commonwealth Secretariat Debt Recording and Management System CUB - Committed Undisbursed Balance D DEA - Department of Economic Affairs DI - Direct Investment DSIM - Department of Statistics and Information Management DSR - Debt Service Ratio DSSI - Debt Service Suspension Initiative viiiE EA - External Assistance ECBs - External Commercial Borrowings ED - External Debt EDS - External Debt Statistics EIB - European Investment Bank EMDEs - Emerging Market and Developing Economies EMEs - Emerging Market Economies F FCCB - Foreign Currency Convertible Bonds FCNR(B) - Foreign Currency Non-Resident Bank FER - Foreign Exchange Reserves FII - Foreign Institutional Investment/Investor FPI - Foreign Portfolio Investments FRN - Floating Rate Notes G GDDS - General Data Dissemination Standards GDP - Gross Domestic Product GNI - Gross National Income G-Sec - Government Securities I IBRD - International Bank for Reconstruction & Development (World Bank) IDA - International Development Agency/Association IDB - India Development Bonds ixIDR - International Debt Report IDS - International Debt Statistics IFAD - International Fund for Agriculture Development IFC(W) - International Financial Corporation (Washington D.C.) IMF - International Monetary Fund INR - Indian Rupee L LICs - Low Income Countries LMICs - Low- and Middle- Income Countries M MDBs - Multilateral Development Banks MoF - Ministry of Finance N NDB - New Development Bank NFC - Non-Financial Corporation NPISHs - Non-Profit Institutions Serving Households NRERA - Non-Resident External Rupee Accounts NRIs - Non-Resident Indians NRO - Non-Resident Ordinary Account O OECD - Organization for Economic Cooperation and Development ODA - Official Development Assistance OFC - Other Financial Corporation OGD - Other Government Debt xOPEC - Organization of Petroleum Exporting Countries P PSUs - Public Sector Units PV - Present Value Q QEDS - Quarterly External Debt Statistics R RBI - Reserve Bank of India RIB - Resurgent India Bond S SDDS - Special Data Dissemination Standards SDLs - State Development Loans SDR - Special Drawing Rights SEBI - Securities Exchange Board of India SED - Sovereign External Debt SLR - Statutory Liquidity Requirement SNA - System of National Accounts xiEXECUTIVE SUMMARY India’s external debt continued to be sustainable and prudently managed. As of the end of March 2024, it stood at US$ 663.8 billion, growing by 6.4 per cent over the level a year ago. The external debt ratio to GDP was 18.7 per cent, while the foreign exchange reserves to external debt ratio were 97.4 per cent. At the end of March 2024, the sovereign external debt at US$ 148.7 billion rose by 11.5 per cent over its level a year ago, mainly because of increased foreign portfolio investment (FPI) in government securities. The non-sovereign debt grew 5.0 per cent to US$ 515.1 billion over the level at the end of March 2023. Commercial borrowings, NRI deposits and short-term trade credit are the three biggest constituents of non-sovereign debt, accounting for as much as 95.1 per cent of total non-sovereign debt. While NRI deposits increased by 9.4 per cent to US$ 151.9 billion, commercial borrowings grew by 13.3 per cent to US$ 250.4 billion. On the other hand, short-term trade credit at US$ 118.0 billion contracted by 4.8 per cent. The long-term external debt constituted 81.5 per cent of the total, while the remaining 18.5 per cent was of short-term maturity. Within short-term debt, trade credit for financing imports accounted for 96.3 per cent of the total short-term debt, underscoring the stability aspect of the debt. The non-financial corporations were the largest borrowers, with an outstanding external debt estimated at US$ 248.1 billion at the end of March 2024. The access to foreign debt was primarily through loans, accounting for 33.4 per cent, followed by deposits (23.3 per cent), trade credits (17.9 per cent) and debt securities (17.3 per cent). In terms of the denomination of external debt, the US dollar was the leading currency (53.8 per cent). The Indian Rupee was the second leading currency (31.5 per cent), with debt mainly in the form of NRI deposits and FPI investment in Indian debt securities, providing an element of comfort from a currency risk standpoint. The US dollar appreciated vis-à-vis the Indian rupee and major currencies such as the yen, the euro and SDR as of the end of March 2024 over the level a year ago. As a result, the valuation gains due to the appreciation of the US dollar were placed at US$ 8.7 billion. Excluding the valuation effect, external debt would have increased by US$ 48.4 billion instead of US$ 39.7 xiibillion at end-March 2024 over the level a year ago. Thus, apart from increased commercial borrowings, FPI investment, NRI deposits and smaller trade credit, stronger US dollar also contributed to the movements in the foreign debt level as of end-March 2024. Above all, the debt vulnerability indicators continued to be benign. The external debt to GDP ratio fell to 18.7 per cent at the end of March 2024 from 19.0 per cent at the end of March 2023. Similarly, the ratio of foreign exchange reserves to total external debt improved to 97.4 per cent from 92.7 per cent during the period. The debt service payment obligations arising out of the stock of external debt as of the end of March 2024 are projected to trend downwards over the coming years. From a cross-country perspective, India’s external debt is modest. In terms of various debt vulnerability indicators, India’s sustainability was better than that of the Low and Middle-Income Countries (LMICs) as a group and vis-à-vis many of them individually. xiiiKEY DATA TRENDS  India’s external debt was placed at US$ 663.8 billion at the end of March 2024, and it recorded a growth of US$ 39.7 billion (6.4 per cent) over its level at the end of March 2023. While 53.8 per cent of it was denominated in US dollars, Indian Rupee denominated debt at 31.5 per cent was the second largest.  The external debt to GDP fell to 18.7 per cent at the end of March 2024 from 19.0 per cent at the end of March 2023. The ratio of foreign exchange reserves to total external debt improved to 97.4 per cent from 92.7 per cent during the period.  The long-term debt estimated at US$ 541.2 billion constituted the largest share of 81.5 per cent, while the short-term debt, at US$ 122.5 billion, accounted for 18.5 per cent of the total. The short-term debt was predominantly in the form of trade credit (96.3 per cent) for financing imports.  Commercial borrowings, NRI deposits, short-term trade credit and multilateral loans together accounted for 90.1 per cent of total external debt. While NRI deposits, commercial borrowings, and multilateral loans grew by 9.4 per cent, 13.3 per cent and 3.7 per cent respectively, short-term trade credit contracted by 4.8 per cent at end-March 2024 over its level a year ago.  At end-March 2024, sovereign external debt amounted to US$ 148.7 billion increasing by 11.5 per cent over the level a year ago, reflected mainly the increased FPI investment in Government securities.  Non-sovereign debt, estimated at US$ 515.1 billion at the end of March 2024, posted a growth of 5.0 per cent over the level a year ago. Commercial borrowings, NRI deposits and short-term trade credit are the three biggest constituents of non-sovereign debt, accounting for as much as 95.1 per cent of total non-sovereign debt.  The debt service ratio increased to 6.7 per cent during 2023-24 from 5.3 per cent during 2022-23 due to higher debt service payments. Based on the original amortization schedule as per loan agreements, the debt service payment obligation arising out of the stock of external debt as of March 2024 is projected to trend downwards over the coming years.  From a cross-country perspective, India’s external debt is modest, ranking 24th globally as of December 20231. In terms of various debt vulnerability indicators, India’s sustainability 1 Ranking on the basis data available in Quarterly External Debt Statistics (QEDS), World Bank xivwas better than the Low-and Middle-Income Countries (LMICs) as a group and vis-à-vis many of them individually xvChapter 1: India’s External Debt – An Overview India’s external debt position is comfortable and prudently managed. It was US$ 663.8 billion as at end-March 2024 growing by 6.4 per cent (US$ 39.7 billion) over the level a year ago. There was a valuation gain of US$ 8.7 billion as at end-March 2024 due to the appreciation of the US dollar vis-à-vis Indian rupee and other major currencies such as Yen, the Euro, and SDR. Excluding the valuation effect, external debt would have increased by US$ 48.4 billion instead of US$ 39.7 billion at end-March 2024 over its level at end-March 2023. External debt as a ratio to GDP declined to 18.7 per cent as at end-March 2024 from 19.0 per cent at end- March 2023. Foreign exchange reserves as a ratio to external debt stood at 97.4 per cent as at end-March 2024. 1.1 This Report documents position of India’s external debt as at end-March 2024 and is organised into five chapters2. This Chapter presents an overview of India’s external debt focusing on the stock of debt, debt and valuation effects, and debt in relation to GDP, foreign exchange reserves and maturity. Chapter 2 elaborates the classification of India’s external debt – analysing from the perspective of debtor sectors, creditors, currency, instruments, maturity and concessionality, while Chapter 3 enumerates sovereign external debt in detail. Issues relating to debt service payments are addressed in Chapter 4. Chapter 5 presents India’s external debt position in a cross-country perspective – both vis-à-vis advanced economies and the low and middle-income countries. OVERVIEW 1.2 India’s external debt placed at US$ 663.8 billion at end-March 2024, recorded a growth of US$ 39.7 billion (6.4 per cent) over its level at end-March 2023. In Rupee terms, the stock of external debt was estimated at ₹55.3 lakh crore at end-March 2024 registering an increase of ₹4.0 lakh crore (7.9 per cent) over its level at end-March 2023 (Figure 1.1). The rise in India’s external debt is attributed to higher loans, securities owned by non-residents, NRI deposits and debt liabilities of direct investment enterprises to direct investors. Optimism 2 In this Report, analysis is basically in terms of US dollar though wherever applicable, data is presented in both US dollar and Indian rupees in annexes. 1surrounding high economic growth trajectory has induced funds from commercial lenders as well as NRIs towards India. External debt outstanding from official creditors have also increased. However, as goods import contracted, trade credit also contracted during 2023-24. Figure 1.1: Stock of India’s External Debt – US Dollar and Indian Rupees (at end- March) a) US Dollar b) Indian Rupee External Debt Stock External Debt Stock Growth Rate (Y-on-Y) - RHS Growth Rate (Y-on-Y) - RHS 800 14 60 14 700 12 12 50 600 10 10 40 500 n o illiB34 00 00 68tn e c r e P e r o r C h 23 00 468 tn e c r $ 4 k a e P S U200 2 L .s 10 2 100 R 0 0 0 0 -2 -100 -2 -10 -4 -200 -4 -20 -6 Source: RBI 1.3 The valuation effect captures the impact of changes in value of US dollar vis-à-vis major currencies on the US dollar value of India’s external debt. At end-March 2024, India’s external debt was placed at US$ 663.8 billion, recording an increase of US$ 39.7 billion over its level at end-March 2023. Valuation gains in the stock of external debt due to the appreciation of the US dollar vis-à-vis Indian rupee and other major currencies such as Yen, the Euro, and SDR were placed at US$ 8.7 billion. Excluding the valuation effect, external debt would have increased by US$ 48.4 billion instead of US$ 39.7 billion at end-March 2024 over its level at end-March 2023 (Figure 1.2). 2Figure 1.2: External Debt and Valuation Effect (at end-March) External Debt including Valuation effect External Debt Excluding Valuation Effect Valuation Gain (+)/Loss(-) - RHS 800 25 20.6 700 16.7 16.6 20 600 500 11.7 15 n 8.7 n o 400 o illiB 300 5.9 10 illiB $ S 200 5 $ S U -1.5 U 100 0 0 -6.8 -5 -100 -5.2 -200 -10 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: RBI SALIENT RATIOS 1.4 Debt sustainability can be assessed on the basis of indicators of the debt stock or debt service relative to various measures of repayment capacity. Debt-to-GDP ratio (defined as the ratio of the total outstanding external debt at the end of the year to annual GDP for that year) provides some indication of the potential to service external debt. At end-March 2024, the external debt to GDP ratio declined to 18.7 per cent from 19.0 per cent at end-March 2023. The ratio has been on its declining path since 2021 (Figure 1.3). Figure 1.3: India’s External Debt and GDP (at end-March) External Debt (US$ Billion) Ratio of Total External Debt to GDP - RHS 700 25 600 20 500 n o illiB400 15 tn e c $ S300 10 r e P U 200 5 100 485 471 529 543 558 573 619 624 664 0 0 Source: RBI 31.5 Short-term debt includes: (i) short-term trade credit up to 180 days as well as above 180 days and up to 1 year, (ii) Foreign Institutional Investor (FII) investments in Government Treasury Bills and corporate securities, (iii) investments by foreign central banks and international institutions in Treasury Bills, and (iv) external debt liabilities of central bank and commercial banks. Short-term debt is considered as a part of volatile capital flows. In the Indian context, the management of short-term debt has been a part of overall external debt management since the early 1990s with the policy to permit short-term debt mainly for trade related credit. The share of short-term debt in total external debt, declined to 18.5 per cent at end-March 2024 form 20.6 per cent at end-March 2023 (Figure 1.4). Figure 1.4: India’s Short Term External Debt (at end-March) Short Term External Debt Ratio of Short- term Debt to Total Debt - RHS 140 21 20.6 120 20.0 20 19.7 100 19.3 19.1 19 n 18.7 o illiB 80 18.5 18 tn e c $ S 60 17.6 r e P U 17.2 17 40 16 20 84 88 102 108 107 101 122 128 123 0 15 Source: RBI 1.6 Countries maintain foreign exchange reserves both for financing international transactions and for facing unforeseen international payment difficulties. In FY 2024, India’s foreign exchange reserve rose to all time high of US$ 646.4 billion covering 97.4 per cent of the total external debt of the country, higher than 92.7 per cent a year ago. The ratio of short- term external debt to foreign exchange reserve fell to 19.0 per cent at end-March 2024 from its level 22.2 per cent at end-March 2023 (Figure 1.5). 4Figure 1.5: Foreign Exchange Reserves to External Debt (at end-March) Ratio of Foreign Exchange Reserves to Total Debt Ratio of Short- term Debt to Foreign Exchange Reserves - RHS 120 30 100 25 80 20 tn tn e e c 60 15 c r r e e P P 40 10 20 5 74 79 80 76 86 101 98 93 97.4 0 0 Source: RBI 1.7 Summarising, India’s external debt has been quite sustainable over the years. The debt vulnerability indicators have been benign and hence a source of comfort. The prudent external debt management policy of the Government of India has helped in maintaining a comfortable external debt position. ……… 5Chapter 2: Classification of India’s External Debt This chapter analyses India’s external debt trends as classified according to institutional sectors, creditors, currency, maturity, instruments and concessionality. As of the end of March 2024, the outstanding sovereign external debt (SED) and non-sovereign external debt increased over their level a year ago. The SED outstanding increased by 11.5 per cent to US$ 148.7 billion at the end of March 2024 from US$ 133.3 billion at the end of March 2023. External debt outstanding of deposit-taking corporations, except the central bank sector, was US$ 186.8 billion at the end of March 2024 as compared to US$ 163.4 billion at the end of March 2023, mainly due to increased NRI deposits. External debt outstanding of non- financial corporation sector increased by 2.2 per cent. On the other hand, the external debt outstanding of other financial corporations declined by 11.8 per during the period. Commercial lenders are the biggest creditor with their ratio in total external debt outstanding at 37.7 per cent at end-March 2024. The external debt outstanding from these lenders saw a significant increase (13.3 per cent) during 2023-24. There was also an increase (9.4 per cent) in the NRI deposits. External debt outstanding from multilateral organisations and bilateral countries increased by 3.7 per cent and 2.0 per cent, respectively. Short-term external debt accounting for 18.5 per cent of total external debt declined by US$ 5.8 billion (4.6 per cent) to US$ 122.5 billion at end-March 2024 from its level a year ago. Short-term external debt by residual maturity was US$ 285.0 billion, higher than its level at US$ 274.4 billion a year ago. However, the ratio of short-term debt by residual maturity basis to the total external debt reduced to 42.9 per cent at end-March 2024 from 44.0 per cent a year ago. US Dollar continued to be the largest component of India’s external debt, with a 53.8 per cent share at the end of March 2024. Indian Rupee external debt occupied second place after US Dollar external debt at end-March 2024 and the share of Indian Rupee external debt increased to 31.5 per cent in total external debt from 29.8 per cent a year ago. The ratio of concessional debt in total external debt outstanding contracted to 7.5 per cent at end-March 2024 from 8.2 per cent at end-March 2023. 62.1 The chapter presents the composition of India’s external debt position in terms of sectors, creditors, maturity, instruments, currency of denomination and concessionality. Over the years, the trend in India’s external debt has reflected an evolving broader macroeconomic framework, in general and strategy on external debt, in particular. The overarching philosophy that has guided the policy includes (i) gradual liberalization of current account transactions, eventually culminating in current account convertibility, (ii) gradual opening of capital account, preferring non-debt flows to debt flows, and (iii) a calibrated approach to External Commercial Borrowings (ECBs) with restrictions on quantum of loan, end-use, lender credentials, and cost of borrowings as well as prudent reliance on short-term debt. DEBTOR INSTITUTIONAL SECTOR-WISE CLASSIFICATION 2.2 As in the System of National Accounts (SNA), 2008 and the sixth edition of the IMF’s Balance of Payment and International Investment Position Manual (BPM6), in the presentation of external debt statistics, institutional units, and the instruments in which they transact are grouped into institutional sectors. These institutional sectors are grouped on the basis of common economic objectives and functions. The four institutional sectors are the General Government, the Central Bank, deposit-taking corporations except the central bank, and other sectors. Other sector has three subsectors - other financial corporations, non-financial corporations, and households and non-profit institutions serving households (NPISHs). Institutional sector-wise external debt outstanding at end-March 2024 is presented in Table 2.1 and Figure 2.1. Table 2.1: India's External Debt: Debtor-wise (US$ Billion, unless indicated otherwise) Sector/Instrument End- End- Variation Mar Mar Absolute Per cent 2023 2024 I. General Government 133.3 148.7 15.4 11.5 II. Central Bank 0.1 0.2 0.1 56.3 III. Deposit-Taking Corporations, except the 163.4 186.8 23.4 14.3 Central Bank IV. Other Sectors 297.8 296.7 -1.1 -0.4 IV.1. Other financial corporations 55.0 48.5 -6.5 -11.8 IV.2. Non-financial corporations 242.8 248.1 5.4 2.2 IV.3. Households and non-profit institutions 0.0 0.0 0.0 -16.5 serving households (NPISHs) V. Direct Investment: Inter-company Lending 29.4 31.4 1.9 6.6 GROSS EXTERNAL DEBT POSITION (I to V) 624.1 663.8 39.7 6.4 Source: RBI and Ministry of Finance. 7Figure 2.1: External Debt of India: Institutional sector wise (at end-March) DI NPISHs NFC OFC DTC Central Bank General Government 700 600 500 n o illib 400 $ S U 300 200 100 0 2021 2022 2023 2024 Source: RBI and Ministry of Finance. Note: DI: Direct Investment: Inter-company lending; NPISH: Households and Non-profit Institutions serving Households (not visible due to small proportion of debt); NFC: Non- financial Corporations; OFC: Other Financial Corporations; DTC: Deposit Taking Corporations, except Central Bank. General Government 2.3 The general government sector is identical with the definition of that sector in the 2008 SNA. The government units of a country consist of those authorities and their agencies that are units established by political processes and exercise legislative, judicial, and executive authority. Public corporations and unincorporated corporations that function as if they were corporations (called quasi-corporations) are excluded from the general government. 2.4 As at end-March 2024, the outstanding of both (general government) SED and non- SED increased over its level a year ago. The SED outstanding increased by 11.5 per cent to US$ 148.7 billion at end-March 2024 from US$ 133.3 billion at end-March 2023 (Figure 2.2). The external debt outstanding of general government is analysed in Chapter 3. 8Figure 2.2: India’s External Debt: Sovereign and Non-Sovereign (at end-March) Non-SED SED ED SED Gr Rate (RHS) Non-SED Gr Rate (RHS) Linear (SED Gr Rate (RHS)) 800 20 700 15 600 500 10 n 400 o illiB 300 5 tn e c $ r e S 200 P U 0 100 0 -5 -100 -200 -10 2018 2019 2020 2021 2022 2023 PR 2024 P Source: RBI and Ministry of Finance. Note: Gr – Growth; PR – Partially Revised; P – Provisional. Central Bank 2.5 The balances of foreign central banks/international institutions with RBI are recorded as the short-term external debt of the central bank. Besides this there is no other debt outstanding. At end-March 2024, the total external debt liabilities of central bank were US$ 0.2 billion. There has not been any significant change in the level over the years. The deposit-taking corporations, except the central bank 2.6 The deposit-taking corporations, except the central bank sector includes units engaging in financial intermediation as a principal activity and having liabilities in the form of deposits. External debt outstanding of deposit-taking corporations, except the central bank sector was US$ 186.8 billion at end-March 2024 as compared to US$ 163.4 billion at end-March 2023. The increase is mainly attributed to higher NRI deposits (9.4 per cent), commercial loans (23.0 per cent) and securitised borrowing of commercial banks (82.0 per cent). 9Other Sectors 2.7 The other sectors category comprises other financial corporations (i.e., other than deposit-taking corporations), non-financial corporations, and NPISHs subsectors. Other financial corporation 2.8 At the end of March 2024, the external debt outstanding of other financial corporations declined by 11.8 per cent to US$ 48.5 billion from its level at the end of March 2023. The outstanding external debt liabilities of foreign portfolio investors decreased significantly by 56.9 per cent. Outstanding of other securities (securitised instruments of ECB) declined by 10.8 per cent. Similarly, loans provided by multilateral agencies and bilateral countries under external assistance also declined by 9.7 per cent. On the other hand, debt outstanding of commercial loans increased by 14.2 per cent. Non-financial corporation 2.9 External debt outstanding of the non-financial corporation sector increased by 2.2 per cent to US$ 248.1 billion at the end of March 2024 from its level a year ago. However, short- term trade credit and advances, which accounted for about 47.6 per cent of the total external debt outstanding in this sector, declined by 4.8 per cent. Contrary to the other financial corporations, foreign portfolio investors invested more funds in the debt instrument of non- financial corporations. Debt liabilities of FPIs to this sector increased by 74.8 per cent at end- March 2024 compared to their level a year ago. Outstanding for commercial loans and loans to defence PSUs has also increased. On the other hand, debt outstanding for other securities (securitised instruments of ECB) declined by 5.3 per cent during the period. Debt outstanding of loans under external assistance to non-financial corporations has also declined during the period. CREDITOR SECTOR 2.10 Information on the non-resident creditors sector that owns India’s external debt is disseminated quarterly by MoF/ RBI as Statement II (Old format). The most commonly 10identified creditors are official creditors. Official creditors are public sector creditors – multilateral organisations and bilateral individual countries. Multilateral organisations are entities established by political agreements among member countries that have the status of international treaties3. External debt outstanding from multilateral organisations increased by 3.7 per cent to US$ 78.1 billion at the end of March 2024 compared to US$ 75.3 billion at the end of March 2023. Similarly, the external debt outstanding from bilateral countries increased by 2.0 per cent to US$ 35.2 billion during the period. Commercial lenders are the biggest creditors with their ratio in total external debt outstanding at 37.7 per cent at end-March 2024. The external debt outstanding from these lenders saw a significant increase (13.3 per cent) during 2023-24. There was also an increase (9.4 per cent) in the NRI deposits. On the other hand, external debt outstanding under trade credit contracted during the period (Table 2.2). Table 2.2: India's External Debt: Creditor-wise (US$ Billion, unless indicated otherwise) Item End- End- End- Absolute Percentage Mar2022 Mar2023 Mar2024 Variation Variation Mar-23 Mar-24 Mar-23 Mar-24 over over over over Mar-22 Mar-23 Mar-22 Mar-23 1 2 3 4 5 6 7 8 I. Multilateral 72.9 75.3 78.1 2.4 2.8 3.4 3.7 II. Bilateral 32.5 34.5 35.2 2.0 0.7 6.1 2.0 III. International 22.9 22.3 21.9 -0.6 -0.4 -2.7 -1.6 Monetary Fund IV. Trade Credit 3.3 2.9 2.9 -0.4 0.0 -12.6 -0.1 V. Commercial 225.8 221.0 250.4 -4.8 29.4 -2.1 13.3 Borrowing VI. NRI deposits 139.0 138.9 151.9 -0.1 13.0 -0.1 9.4 VII. Rupee Debt 1.0 0.8 0.9 -0.1 0.0 -15.3 4.7 VIII. Short Term 121.7 128.4 122.5 6.7 -5.9 5.5 -4.6 Debt a) Trade Related 117.4 123.9 118.0 6.5 -5.9 5.6 -4.8 Debt Total External 619.1 624.1 663.8 5.0 39.7 0.8 6.4 Debt (I to VIII) Memo Items: A. Total Long-Term 497.4 495.7 541.2 -1.7 45.6 -0.3 9.2 Debt B. Total Short-Term 121.7 128.4 122.5 6.7 -5.9 5.5 -4.6 Debt Source: RBI and Ministry of Finance. 3 External Debt Statistics: Guide for Compilers and Users, IMF 11Figure 2.3: Share of External Debt as at End-March 2024: Creditor-wise Short-term Debt; Multilateral; 11.8% 18.5% Bilateral; 5.3% Rupee Debt; 0.1% IMF; 3.3% Trade Credit; 0.4% Non-resident Deposits; 22.9% Commercial Borrowings; 37.7% Source: RBI and Ministry of Finance. Official Creditors (Multilateral and Bilateral)4 External Assistance 2.11 India has been accepting external assistance from multilateral and bilateral partners in the form of loans, grants and technical assistance. A characteristic feature of external funding in the initial years of development was the reliance on bilateral sources. However, after the 1970s, multilateral sources of funding began to gain predominance. Foreign resources continued to come primarily through external assistance till 1970s. During 1980s there was a compositional shift in India’s external debt from external assistance to commercial debt. Annexures XVI and XVII give details of the sources of external assistance for India. Debt from International Monetary Fund (SDR) 2.12 The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries. The debt outstanding from IMF is detailed in para 2.31. 4 Information on official creditors is available on the website of Aid Accounts and Audit Division, DEA https://caaa.gov.in/ 12Trade Credits 2.13 Trade credits/Export credits refer to loans and credits extended for imports directly by overseas suppliers, banks, and financial institutions. If such credit is extended by the overseas suppliers in the form of deferred payment, it is “suppliers’ credit”. On the other hand, buyers’ credit refers to loans for repayment of imports into India arranged by the importers from a bank or financial institution outside India. As these liabilities result from non-financial flow (imports), they are placed in a separate category. Though trade credits are generally short-term in nature, trade credits and advances are sub-divided into short-term (with a maturity of a year or less) and long-term (with a maturity of more than one year and less than three years) categories. 2.14 As bank-financed trade credits are typically short-term, backed by receivables and self- liquidating, their performance, transfer and convertibility risks are considered lower than other cross-border lending. Short-term trade credit is the dominant component of external trade credit (97.6 per cent), as well as short-term external debt (96.3 per cent) (Figure 2.4). As merchandise import contracted during 2023-24, short- term trade credit also contracted by 4.8 per cent in 2023-24 (Figure 2.5). Figure 2.4: Long-term and Short-term trade credit (at end-March) 140 Long-TermTrade Credit Short-Term Trade Credit 120 100 n o illiB 80 $ S 60 U 40 20 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: RBI 13Figure 2.5: Imports and Trade Credit (at end-March) Imports Short Term Trade credits 800 140 700 120 600 100 n o 500 n illiB $ S 400 68 00 o illiB $ U S 300 U 40 200 100 20 0 0 Source: RBI Commercial Borrowing 2.15 Commercial borrowings include commercial loans, commercial borrowings raised through the issue of securities/bonds, FPI investment in long-term corporate and government securities, securitised borrowings of commercial banks and loans/securitised borrowings, etc., with multilateral/bilateral guarantee and IFC(W). These borrowings are taken under the Foreign Exchange Management Act (FEMA). As explained previously, official sources (multilateral and bilateral) also provide external finance on commercial terms. However, these finances are recorded in their corresponding creditors (“multilateral” and “bilateral”) categories. This category provides information on commercial borrowing from unofficial sources. 2.16 At end-March 2024, commercial borrowings increased by 13.3 per cent to US$ 250.4 billion from their level a year ago. The main drivers for increased commercial borrowings were an increase in FPI in debt instruments (32.8 per cent), commercial loans (9.3 per cent) and securitised borrowings by commercial banks (82.0 per cent). On the other hand, commercial borrowings raised through the issue of securities/bonds declined by 7.0 per cent during the period (Figure 2.6). 14Figure 2.6: External Commercial Borrowings: Component-wise (at end-March) 300 Borrowings with guarantee and IFC(W) 250 Banks' secutirised borrowings 200 n o illib $ 150 FPI S U 100 Borrowings through securites/bonds 50 Commercial loans 0 2023 2024 Source: RBI Non-Resident Indians (NRI) Deposits 2.17 Data on non-resident accounts, viz., FCNR(B), NRE and NRO accounts, is reported by the banks which are authorised to deal with NRI deposits, to RBI. The outstanding balances of the repatriable deposits are included under external debt statistics. At the end of March 2024, NRI deposits outstanding increased by US$ 13.0 billion (9.4 per cent) to US$ 151.9 billion from its level a year ago. Though outstanding in all three accounts increased, deposits in FCNR(B), which accept deposits in foreign currencies, increased significantly by 32.9 per cent. RUPEE DEBT 2.18 At the end of March 2024, the total Rupee debt outstanding was US$ 0.8 billion, of which about 94.8 per cent is defence external debt. MATURITY-WISE CLASSIFICATION 2.19 The maturity composition of debt is important because it can have a profound impact on liquidity. Though the level of short-term exposure signifies external sector vulnerability, some short-term finance is essential to finance transactions and support economic activity. The High-Level Committee on Balance of Payment (Chairman: Dr. C. Rangarajan) recommended 15that short-term debt should be permitted only for trade-related purposes and under normal terms. 2.20 Compared with other developing countries, India has a relatively low dependence on external financing of short-term maturity. Short-term debt by original maturity 2.21 When the period encompassing the precise time of the creation of the external financial liabilities to its date of final maturity is less than one year, the outstanding amount is external short-term debt by original maturity. 2.22 Short-term external debt declined by US$ 5.9 billion (4.6 per cent) to US$ 122.5 billion at end-March 2024 from its level at end-March 2023. At the end of March 2024, the share of short-term debt in total external debt declined to 18.5 per cent from 20.6 per cent at the end of March 2023. Furthermore, the short-term debt ratio to foreign exchange reserve declined to 19.0 per cent from 22.2 per cent during the period (Figure 2.7). Figure 2.7: India’s External Debt: Maturity-wise (at end-March) Short-term External Debt Short Term Debt to FER Ratio Short Term Trade Credit Growth Rate 140 35 30 120 25 100 20 n o illiB $ S 68 00 11 05 tn e c r e P U 5 40 0 20 -5 0 -10 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: RBI and Ministry of Finance. 16Figure 2.8: Share of Long-Term and Short-Term Debt (at end-March) Share of LT Debt Share of ST Debt 100% 20.5 18.0 17.2 18.7 19.3 20.0 19.1 17.6 19.7 20.6 18.5 80% 60% 40% 79.5 82.0 82.8 81.3 80.7 80.0 80.9 82.4 80.3 79.4 81.5 20% 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: RBI and Ministry of Finance. 2.23 As explained earlier, about 96.3 per cent of short-term external debt is trade-related credit. Other small components of short-term debt are Vostro balance and Nostro overdrafts of commercial banks (2.2 per cent), FPI investment in government treasury bills and other instruments (1.1 per cents), investment in treasury bills by foreign central banks and international institutions, etc. (0.2 per cent), and balances of foreign central banks/international institutions with RBI (0.2 per cent). Short-term debt by residual maturity 2.24 External debt by residual maturity includes short-term debt by original maturity of up to one year, combined with medium to long-term debt repayment by original maturity but falling due within one year. Residual maturity measures provide an indication of when payments will fall due and the potential liquidity risks facing the economy. At the end of March 2024, short-term external debt by residual maturity was US$ 285.0 billion, higher than its level of US$ 274.4 billion at the end of March 2023. However, the ratio of short-term debt by residual maturity basis to the total external debt reduced to 42.9 per cent at end-March 2024 from 44.0 per cent a year ago. Similarly, the ratio of short-term external debt to foreign exchange reserve improved to 44.1 per cent from 47.4 per cent during the period. 2.25 Analysis of total external debt by residual maturity reveals that at end-March 2024 short-term by residual maturity of up to one year occupies a major share (42.9 per cent) in total external debt, followed by debt maturing in more than three years (39.2 per cent). The share of 17external debt maturing in 1 to 2 years and 2 to 3 years in total external debt were 9.7 per cent and 8.2 per cent, respectively (Figure 2.9). Figure 2.9: India’s External Debt at end-March 2024: Residual Maturity-wise Short-term up to one year 260.3 285.0 39% 1 to 2 years 43% 2 to 3 years 54.1 64.4 More than 3 years 8% 10% Source: RBI 2.26 Non-financial corporations have the highest share in short-term external debt by residual maturity, mainly due to short-term trade credit. This is followed by deposit-taking corporations except central banks (commercial banks) mainly due to non-resident Indian deposits. The non-financial corporation and deposit-taking corporation together accounted for 92.0 per cent of short-term external debt by residual maturity basis (Figure 2.10). On the other hand, the general government accounts for over 44.6 per cent of the stock of external debt maturing beyond three years. Figure 2.10: Composition of Short-term debt by residual maturity: sector-wise (at end- March 2024) Long-term debt falling due in one year Short-term debt 160 140 120 n100 o illib 80 $ S 60 U 40 20 0 Government Central Bank Commecial Banks OFC NFC Source: RBI Note: OFC- Other Financial Corporation; NFC- Non-financial Corporations. 18Table 2.3: Residual Maturity of External Debt Outstanding as of end-March 2024 (US$ Billion) Sector Short- Long-term Total term up 1 to 2 2 to 3 More (2 to 5) to one years years than 3 year years 1 2 3 4 5 6 I. General Government 8.8 10.1 13.7 116.1 148.7 II. Central Bank 0.2 0.0 0.0 0.0 0.2 III. Deposit-Taking Corporations, except 111.0 29.2 9.3 37.3 186.8 the Central Bank IV. Other Sectors 157.9 21.2 26.4 91.2 296.7 IV.1. Other financial corporations 6.9 5.5 10.4 25.8 48.5 IV.2. Non-financial corporations 151.0 15.8 16.0 65.4 248.1 IV.3. Households and non-profit 0.0 0.0 0.0 0.0 0.0 institutions serving households (NPISHs) V. Direct Investment: Intercompany 7.1 3.9 4.7 15.8 31.4 Lending C. Total External Debt (A+B) 285.0 64.4 54.1 260.3 663.8 Memo Items: Short-term Debt (residual maturity) as per cent of Total External Debt 42.9 Short-term Debt (residual maturity) as per cent of Foreign Exchange Reserves 44.1 *: Short-term debt by residual maturity comprises long-term debt by original maturity falling due over the next twelve months and short-term debt by original maturity. Source: RBI CURRENCY-WISE CLASSIFICATION 2.27 The currency composition of external debt is important for monitoring an economy’s potential vulnerability to exchange rate, solvency, and liquidity risk. 2.28 Foreign currency debt is defined as debt in which the value of flows and positions is fixed in a currency other than the domestic currency5. Exchange rate fluctuations can increase or decrease borrowing costs, impacting the value of foreign-currency-denominated debt obligations. US dollar-denominated debt remained the largest component of India’s external debt, with a share of 53.8 per cent at the end of March 2024. The Indian Rupee has been gaining in prominence in recent years, reflecting an increase in FPI in debt instruments and balance under NRE accounts. Indian Rupee external debt occupied second place after US Dollar external debt at end-March 2024 with its share increasing to 31.5 per cent in total external debt from 29.8 per cent a year ago (Figure 2.11). 5 External Debt Statistics: Guide for Compilers and Users, IMF 19Figure 2.11: Share of foreign currency debt in total external debt (%) during 2011 to 2024 (at end-March) 85 82.6 80.6 80 77.1 tn e C 75 r e P 70.2 69.2 68.8 68.5 70 68.5 64.9 65 60 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: QEDS, World Bank 2.29 Japanese Yen denominated debt, with its ratio of 5.8 per cent, occupied third place after US Dollar and Rupee denominated external debt at end-March 2024. These are followed by SDR (5.4 per cent) and Euro (2.8 per cent) denominated debt (Figure 2.12). Figure 2.12: India’s External Debt at end-March 2024 – Currency Composition (% Share) of Total External Debt 100% 2.9 3.2 2.8 5.4 5.7 5.8 90% 6.6 6.1 5.4 80% Others 70% 31.1 29.8 31.5 Pound Sterling 60% tn Euro e c 50% r Japanese Yen e P 40% SDR Indian Rupee 30% 53.1 54.6 53.8 US Dollar 20% 10% 0% 2022 2023 2024 Source: RBI and Ministry of Finance 20INSTRUMENT-WISE CLASSIFICATION 2.30 A debt instrument is a financial tool used to raise foreign capital. External debt position is presented in six debt instruments- SDR, currency and deposits, securities, loans, trade credits & advances and other debt liabilities. Instrument-wise classification of external debt in terms of bonds, loans, trade credits and deposits, along with borrowers’ details, describes a mix of instruments through which debtors gain access to external debt financing. As of March 2024 access to foreign debt by the debtors is primarily in the forms of loans, accounting for 33.4 per cent (including multilateral, bilateral credits and bank loans), followed by deposits (23.3 per cent), trade credit (17.9 per cent) and debt securities (17.3 per cent), direct investment- intercompany lending (4.7 per cent), and SDR (3.3 per cent) (Figure 2.13). Figure 2.13: India’s External Debt as at end-March 2024 – Instrument-wise (per cent of total) 4.7% 3.3% SDRs 17.9% Currency and deposits 23.3% Debt securities Loans 17.3% Trade credit and advances 33.4% Direct Investment Source: RBI Special drawing rights (SDRs) 2.31 SDRs are international reserve assets created by the IMF and allocated to members to supplement existing official reserves. SDRs allocated by the IMF to a member country that is a participant in the SDR Department are a long-term liability of the member because upon termination of participation in, or liquidation of, the SDR Department, the member will be required to repay these allocations and because interest accrues. Hence, SDR allocations are shown in the gross external debt position. However, SDR allocation does not add to a country’s 21debt burden. The allocations are made in proportion to countries’ participation in IMF capital and are cost-free.6 At the end of March 2024, India’s SDR holdings and corresponding liabilities to the rest of the world were US$ 21.9 billion, accounting for 3.3 per cent of the total external debt outstanding. Currency and Deposits 2.32 Deposits are liabilities owned by a non-resident. At the end of March 2024, external debt outstanding under currency and deposits was US$ 154.8 billion, higher by 9.7 per cent than its level a year ago. About 23.3 per cent of external debt outstanding at the end of March 2024 was in the form of currency and deposits. NRI deposits are the only long-term deposits recorded under this class and account for about 98 per cent of total external debt outstanding under this tool. Vostro balance and Nostro overdrafts of commercial banks and balances of foreign central banks/international institutions with RBI are the other short-term deposits. Loans 2.33 Loans are not intended for negotiability. Non-negotiability characteristics of loans differentiate them from securities. IMF defines loans as those financial assets created through the direct lending of funds by creditors to debtors through an arrangement in which lenders either receive no security evidencing the transactions or receive a non-negotiable document or instrument. The bulk part of external debt is in the form of loans (33.4 per cent at end-March 2024). At the end of March 2024, the total external loan outstanding was US$ 222.0 billion, US$ 19.6 billion (9.7 per cent) higher than its level a year ago. 2.34 External assistance by official creditors (multilateral and bilateral) is the main component of external loans. Other components are commercial loans, securitised borrowings of commercial banks and external defence debt. All components have contributed to increasing the loan outstanding. Commercial loans have increased by US$ 7.4 billion, followed by the securitised borrowings of commercial banks (US$ 8.4 billion), external assistance (US$ 3.7 billion) and defence external debt (US$ 0.1 billion). 6 External Debt Statistics: Guide for Compilers and Users, IMF and 7 Things You Need to Know About SDR, IMF. 22Trade Credits and advances 2.35 Trade credits and advances refer to the credits extended for imports directly by overseas suppliers, banks, and financial institutions. However, the ‘trade credit and advances’ as an instrument (in IMF format) is different from the “Trade Credit” shown in creditor-wise classification. The long-term loans for repayment of imports into India arranged by the importer from a bank or financial institution outside India (buyers’ credit) are recorded in “loan”. 2.36 Contraction in merchandise imports by 5.7 per cent in FY 2024 had a bearing on the trade credit and advances. At end-March 2024 trade credit and advances contracted by 5.7 billion (4.6 per cent) to US$ 118.6 billion from its level US$ 124.3 billion at end-March 2023. As explained earlier trade credit and advances are mainly of short-term maturity. Trade credit and advances constituted about 17.9 per cent of total external debt at the end of March 2024. Debt Securities 2.37 A security is a negotiable financial instrument. Negotiability refers to the fact that its legal ownership can readily transfer from one owner to another by delivery or endorsement. Debt securities constitute 17.3 per cent of total external debt and include FPI investment in long-term corporate and government securities, commercial borrowings raised through the issue of securities/bonds and a small amount of Investment in Treasury Bills by foreign central banks and international institutions, etc. At the end of March 2024, the total external debt in the form of debt securities was US$ 115.1 billion compared to US$ 104.6 billion a year ago. Direct Investment: Inter-company lending 2.38 In the presentation of the institutional sector-wise gross external debt position in Statement I, intercompany lending liabilities under a direct investment relationship are separately identified. Intercompany lending between entities in a direct investment relationship is presented separately as they are the claims on a related entity, and the nature of the relationship between debtor and creditor is different from that for other debts. At the end of March 2024, the outstanding external debt under this instrument was US$ 31.4 billion compared to US$ 29.4 billion a year ago. 23CONCESSIONALITY-WISE CLASSIFICATION 2.39 Concessionality of external finance could be reflected in terms of lower rate of interest, elongation of maturity or repayment periods, etc. and is measured by the difference between the face value of the credit and the sum of the discounted future debt service payment. All bilateral loans granted to the government are in concessional terms. About one-fourth (25.6 per cent) of multilateral loans provided to the government are in concessional terms at the end of March 2024. Loans from IDA, IFAD and OPEC have long-term maturity and relatively low interest rates/service charges and, hence, are treated as concessional. Some bilateral loans (45.2 per cent) provided to non-government sectors are also concessional. At the end of March 2024, about 30.8 per cent of total government debt outstanding is in concessional terms. The ratio of concessional debt in total external debt outstanding contracted to 7.5 per cent at end-March 2024 from 8.2 per cent at end-March 2023 (Figure 2.15). Figure 2.14: India’s External Debt – Concessional and Non-Concessional (at end- March) Concessional Debt Non Concessional Debt Growth Rate of concessional debt - RHS Share of concessional debt - RHS 700 15 600 10 500 5 n 400 tn o e illiB 300 0 c r e $ S -5P U 200 -10 100 0 -15 2015 2016 2017 2018 2019 2020 2021 2022 2023 PR 2024 P Source: RBI Note: PR – Partially Revised; P – Provisional. 2.40 This Chapter describes India’s external debt in terms of the various classifications. As of the end of March 2024, both government and non-government's outstanding external debt increased over its level a year ago. Commercial lenders are the biggest contributors to the external debt outstanding, followed by NRI deposits. External debt outstanding in all these 24categories has increased during FY 2024. However, short-term debt declined by 4.6 per cent. Furthermore, the share of Rupee rupee-denominated external debt in total external debt outstanding has increased. ……… 25Chapter 3: Sovereign External Debt The outstanding Sovereign External Debt (SED) increased by 11.5 per cent to US$ 148.7 billion at the end of March 2024 from US$ 133.3 billion at the end of March 2023. Under the external assistance programme, the multilateral debt of the government rose by 5.1 per cent to US$ 66.7 billion from US$ 63.5 billion a year ago, while the bilateral debt of the government increased by 4.2 per cent to US$ 28.8 billion as of the end of March 2024 from US$ 27.6 billion a year ago. At the end of March 2024, Other Government Debt (OGD) placed at US$ 53.2 billion, an increase of US$ 11.0 billion (25.9 per cent) over its level at the end of March 2023, mainly due to increased FPI investment in G-Sec. US dollar-denominated debt maintained its share (37.5 per cent). However, increased FPI investment in government-dated securities has resulted in an increased share (21.1 per cent) of Indian Rupee-denominated debt in SED at end-March 2024 compared to its level (15.0 per cent) a year ago. Total SED service payments during 2023-24 increased by 27.9 per cent to US$ 10.0 billion in 2023-24 compared to US$ 7.8 billion during 2022-23. The SED service payment during the current year (2024-25) is projected to increase to US$ 12.8 billion. INTRODUCTION 3.1 The present chapter provides a detailed analysis of the country’s SED, its creditor-wise composition, currency composition, SED service payments, explicit contingent liabilities of the Government and SED service projections. The SED consists of (i) External Debt outstanding on account of multilateral and bilateral loans received by the Government of India under the “external assistance” programme and civilian component of Rupee Debt and (ii) OGD comprising borrowings from IMF (SDRs), defence debt component of Rupee Debt as well as foreign currency defence debt and FPI investment in G-secs. 3.2 The SED outstanding increased by 11.5 per cent to US$ 148.7 billion at the end of March 2024 from US$ 133.3 billion at the end of March 2023. In terms of ratio to GDP, SED 26increased marginally from 4.1 per cent at the end of March 2023 to 4.2 per cent at the end of March 2024. Figure 3.1 shows that the share of SED in total external debt was 22.4 per cent at the end of March 2024. Figure 3.1: Sovereign External Debt: Stock and Share (at end-March) Sovereign External Debt (US$ Billion) SED (as a % of Total ED) 160 25 140 22.4 23 n 120 21.4 o illiB $ 100 20.3 21.1 21.1 21 tn e c r e S 19.5 P U 80 19.1 18.1 19 60 40 17 20 95.8 111.9 103.8 100.9 111.6 130.8 133.3 148.7 0 15 2017 2018 2019 2020 2021 2022 2023 2024 Source: RBI, CAAA and CCIL. Note: Data pertains to end-March 3.3 The central government debt in India is raised predominantly from domestic investors. The share of external debt in total government debt has gradually declined. The share of external liabilities in central government total liabilities has significantly reduced from 25.7 per cent in 1991-92 to 4.4 per cent in 2023-247. The low share of external debt insulates the government's debt portfolio from currency risk. COMPOSITION OF SOVEREIGN EXTERNAL DEBT 3.4 SED outstanding is dominated by loans from multilateral agencies and bilateral countries under external assistance. Debt taken from multilateral agencies has the highest share (44.8 per cent) in total SED, followed by debt securities (20.6 per cent) and loans from bilateral countries (19.4 per cent) (Figure 3.2). 7 Table 110, Handbook of Statistics on Indian economy, RBI https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=21916 27Figure 3.2: Components of Sovereign External Debt (at end-March 2024) Debt Securities 20.6% Multilateral 44.8% SDR 14.7% Defence 0.5% Bilateral 19.4% Source: CAAA, RBI, CCIL and Ministry of Defence. External Assistance 3.5 Under the external assistance programme, the borrowings are mainly from multilateral and bilateral sources, which are long-term in nature. As at end-March 2024, the multilateral debt of the government rose by 5.1 per cent to US$ 66.7 billion from US$ 63.5 billion a year ago, while the bilateral debt of the government increased by 4.2 per cent to US$ 28.8 billion as at end March 2024 from US$ 27.6 billion a year ago. The multilateral sources have consistently dominated external debt on government account under external assistance. (Figure 3.3a & Figure 3.4b). Figure 3.3: Composition of Sovereign External Debt under External Assistance (at end- March) b) Relative Contribution to Growth in a) Debt under External Assistance Debt under EA Multilateral Debt Bilateral Bilateral Debt Multilateral Share of Multilateral Debt - RHS 15 Total Growth in EA 80 Share of Bilateral Debt - RHS 80 10 60 60 n n o illiB40 40tn e c o illiB5 $ r e $ S P S U U 20 20 0 0 0 3 1 4 1 5 1 6 1 7 1 8 1 9 1 0 2 1 2 2 2 3 2 4 2 -5 4 1 5 1 6 1 7 1 8 1 9 1 0 2 1 2 2 2 3 2 4 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 Source: CAAA 283.6 The contribution of external assistance in overall SED (including dated securities held by FIIs) has been declining over the long-time horizon. However, during the pandemic, share of external assistance went up sharply due to additional borrowing resorted by the government in view of severe impact of Covid-19 on Indian economy and government finances. However, the trend reversed after that and at end-March 2024, the share of external assistance was 64.2 per cent lower than its level at end-March 2019, the pre pandemic year (Figure 3.4). Figure 3.4: External Assistance vs Other Government Debt (at end-March) Debt under External Assistance Other Government External Debt % Share Ext. Assist. In SED (RHS) % Share of Other Gov. Debt in SED (RHS) 120 80 70 100 60 80 n 50 o illiB 60 40 tn e c $ r e S P U 30 40 20 20 10 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: CAAA, CCIL, RBI. Multi-lateral Debt 3.7 External debt outstanding from multilateral agencies was US$ 66.7 billion at end March 2024 higher by US$ 3.2 billion (5.1 per cent) over its level a year ago. Debt from Asian Development Bank (ADB) with total outstanding of US$ 21.5 billion had the highest share (32.2 per cent) in overall external debt outstanding from multilateral agencies. The International Bank for Reconstruction and Development (IBRD), with its share of 28.2 per cent, accounted for the maximum increase (13.9 per cent) in the external debt outstanding between the end of March 2023 and the end of March 2024. On the other hand, there was a contraction of 11.5 per cent in debt outstanding from the International Development Association (IDA). The IDA extends soft loans to its member countries (Figure 3.5). 29Figure 3.5: Composition of Multi-lateral debt as at end-March 2023 and 2024 ADB IBRD IDA AIIB NDB Others (including IFAD) 120 2.4 2.6 100 5.7 5.8 5.5 6.4 80 29.5 24.8 tn e c 60 r e P 26.0 28.2 40 20 30.9 32.2 0 2023 2024 Source: CAAA 3.8 The government has announced that it would take funds from the World Bank only through IBRD, and the IDA resources being offered to India should be made available to meet the requirements of other needy IDA clients8. However, the debt outstanding from IDA had the third largest share (24.8 per cent) in total external debt outstanding from multilateral loans. The loans from ADB and IBRD are non-concessional. Figure 3.6: Relative contribution of different Multi-lateral Organisations in growth of Debt under External Assistance (at end-March) 30 IDA IBRD ADB IFAD Others 25 20 n o illiB15 $ S U10 5 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: CAAA 8 External Funding 2022-23, Aid, Account and Audit Division, DEA https://caaa.gov.in/Assets/Brochure/External%20Funding%202022-23.pdf 303.9 External debt outstanding from other multi-lateral agencies such as Asian Infrastructure Investment Bank (AIIB) (6.4 per cent), New Development Bank (NDB) (5.7 per cent), European Investment Bank (EIB) (1.6 per cent) and International Fund for Agriculture Development (IFAD) (0.8 per cent) had the smaller share in total external debt outstanding from multilateral agencies. However, external debt outstanding from these agencies has been increasing over the years. Bilateral Debt 3.10 External debt outstanding from bilateral creditors was US$ 28.8 billion at the end of March 2024, higher by US$ 1.2 billion over its level a year ago. Japan continues to be India's largest creditor, with a debt outstanding of US$ 20.7 billion. However, its share in all bilateral creditors is lower at 72.0 per cent at the end of March 2024 than its share (74.6 per cent) a year ago. External debt outstanding from Russia, the second largest creditor after Japan, increased by 25.8 per cent at end-March 2024 from its level at previous year, thereby increasing its share from 11.2 per cent to 13.5 per cent. Debt outstanding from Germany and France has increased at end-March 2024 from their level at end-March 2023. However, their share in all bilateral creditors remained the same at 10.0 per cent and 4.1 per cent, respectively (Figure 3.7). Figure 3.7: Composition (% Share) of Bilateral Debt at end-March 2023 and 2024 Japan Germany Russia France Others (incl. USA & Korea) 2024 72.0 10.0 13.5 4.1 0.4 2023 74.6 10.0 11.2 4.1 0.1 0 20 40 60 80 100 120 Per cent Source: CAAA 31Other Government Debt (OGD) 3.11 Internal debt of the Central Government consists of marketable securities (75.8 per cent) and non-marketable securities (24.2 per cent)9. Some of these securities are held by Foreign Institutional Investors (FIIs). The securities held by FIIs combined with defence external debt and borrowing from IMF are classified as other government external debt (OGD). The OGD, together with external assistance, make the government's gross external debt outstanding. At the end of March 2024, OGD placed at US$ 53.2 billion, an increase of US$11.0 billion (25.9 per cent) over its level at the end of March 2023, mainly due to increased FPI investment in G-Sec. (Figure 3.8) (Annexure XVII) Figure 3.8: Composition of Other Government Debt at end-March 2023 and 2024 2023 2024 35 30 25 n 20 o illiB 15 $ S 10 U 5 0 Debt Securities (FII) SDR Defence Source: CCIL, RBI and Ministry of Defence FII in G-Sec. 3.12 OGD contributes relatively more to the growth variability of Government debt due to changes in the holdings of G-Sect by FIIs. 3.13 Outstanding FPI investment in government-dated securities was 57.14 per cent of other government external debt at the end of March 2024. At the end of March 2024, FII investment in dated securities jumped by 62.7 per cent to 30.4 billion from its level of 18.7 billion at the end of March 2023. As explained in the Status Report 2023-24, a high share of FPI investment 9 Quarterly Report on Public Debt Management, January-March 2024, Budget Division, DEA 32in government-dated securities is in response to the calibrated opening up of the Indian debt market to foreign investment. The regulatory regime relating to FPI investment in debt instruments has been revised in recent years to encourage foreign investment in India’s debt instruments. The ownership pattern of dated securities indicates a gradual broadening of the investor base over time. (Figure 3.9) Figure 3.9: Ownership of Government dated securities by FIIs 2.3 2.5 1.9 2.0 1.6 1.6 1.6 tn1.5 1.4 1.4 1.3 1.4 e c r e P1.0 0.5 0.0 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 r a M r p A y a M n u J lu J g u A p e S tc O v o N c e D n a J b e F r a M r p A y a M n u J lu J g u A p e S tc O v o N c e D n a J b e F r a M Source: RBI Special Drawing Rights 3.14 SDR accounts for 41.2 per cent of OGD. At end- March 2024 total outstanding under IMF borrowing (SDR) was US$ 21.9 billion against US$ 22.3 billion at end-March 2023. Defence External Debt 3.15 Defence debt is a minuscule part of OGD. At the end of March 2024, the total defence external debt outstanding was US$ 0.8 billion, which accounted for 1.5 per cent of OGD. The outstanding debt of defence PSUs has been shown as part of non-government debt since 1996. CURRENCY COMPOSITION 3.16 Increased FPI investment in government-dated securities has resulted in increased share (21.1 per cent) of Indian Rupee-denominated debt in SED at end-March 2024 compared to its 33level (15.0 per cent) a year ago. The largest component, US dollar-denominated debt, maintained its share (37.5 per cent) compared to its level (37.3 per cent) a year ago. The share of other currencies declined during the period (Figure 3.10) (Annexure XVIII). Figure 3.10: Currency composition (% Share) of Sovereign External Debt (at end- March) 40 37.5 37.3 2023 2024 35 28.5 30 24.0 25 tn 21.1 e c 20 r 15.4 e 15.0 P 13.9 15 10 3.7 3.5 5 0.0 0.0 0.0 0.0 0 Source: RBI. SOVEREIGN EXTERNAL DEBT SERVICE PAYMENTS 3.17 Total sovereign external debt service payment during 2023-24 jumped by 27.9 per cent to US$ 10.0 billion in 2023-24 compared to US$ 7.8 billion during 2022-23. A major share (89.7 per cent) of this payment accounts for the debt service payment to the external debt under government account, i.e. debt service payment to multilateral and bilateral agencies. The rest is for the debt service payment to FPI investors and a miniscule amount for defence external debt. 3.18 Debt service payments to multilateral agencies in 2023-24 increased by 49.6 per cent in 2023-24 compared to the payments during the previous year. An increase in the interest amount mainly contributed to this increase. On the other hand, debt service payments to FPI investors declined by about 28.2 per cent in 2023-24 compared to 2022-23. Debt service payments to bilateral countries increased marginally by 7.1 per cent during the period. 34Figure 3.11: Multilateral Debt Service Payments Multilateral Share of Multilateral in to debt under govt. acctt. RHS) 8 90 7 80 70 6 n o illiB45 56 00 tn e c $ 40 r e S3 P U 30 2 20 1 10 0 0 Source: CAAA 3.19 In 2023-24, debt service payments to all multilateral agencies increased compared to 2022-23. ADB, which is the top debtor multilateral agency, has the highest amount of debt service payments, with an 85.3 per cent increase compared to the previous year and accounts for the maximum increase in debt service payments to these agencies. Similarly, debt service payments to IBRD increased by 48.7 per cent. 3.20 Debt service payment to Japan, the largest bilateral debtor to the Government, has increased marginally by 0.5 per cent. Debt service payments to Russia, the second largest debtor, have shown a decline during the period. However, debt service payments to France and Germany increased by 55.8 per cent and 29.9 per cent, respectively, during the period. Figure 3.12: Bilateral Debt Service Payments Bilateral Share of Bilateral in total debt under govt. acctt (RHS) 1.6 40 1.4 35 1.2 30 n o illiB 01 .. 80 22 05 tn e c $ r e S 0.6 15 P U 0.4 10 0.2 5 0.0 0 Source: CAAA 353.21 Debt service payment to FPI investors declined substantially by 28.3 per cent on account of the decrease in principal repayment in 2023-24 compared to the previous year. FPI investment, which is rupee-denominated external debt, accounts for 20.5 per cent of total government debt outstanding. However, their share in total government debt service payments is 10.1 per cent. 3.22 The debt service payments of SED are presented in Annexure XIX, and external debt service payments of SED on the Government account under external assistance are presented in Annexure XXI. CONTINGENT LIABILITY 3.23 Contingent liabilities refer to such legal obligations that may fall on the borrower if the borrower defaults on the payment of principal and/or interest of a credit. Sovereign external contingent liabilities relate to guarantees provided by the Government of India for specific loans raised by the non-government sector from non-residents. The magnitude of contingent liabilities is regularly monitored from the point of view of their implications for overall macroeconomic and financial stability. 3.24 The government guarantee of external debt of the non-government sector declined by 6.0 per cent to US$ 10.4 billion at the end of March 2024 over its level a year ago. Figure 3.13: Government Debt and Government Guaranteed Debt (at end-March) 180 Government Guaranteed Debt Government Debt 160 10.4 140 11.4 11.0 n o120 10.5 11.4 11.5 11.7 illiB100 9.9 9.6 10.1 10.2 $ 80 S 148.7 U 130.8 133.3 60 111.9 111.6 40 83.7 89.7 93.6 95.8 103.8 100.9 20 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PR 2024 P Source: CAAA, RBI, SEBI and CCIL 363.25 The Government of India provides guarantees on a selective basis on external borrowings by public sector enterprises and development financial institutions. Guarantees by the government to external commercial borrowing are discouraged. There is no government- guaranteed debt pertaining to the private sector (non-financial). Figure 3.14: Government Guaranteed External Debt of debtor sectors (at end-March) 14.0 Public Sector Financial Sector 12.0 10.0 n o 8.0 illib $ S 6.0 8.2 8.1 8.0 7.5 U 4.0 2.0 3.5 3.3 3.1 2.8 - 2021 2022 2023 PR 2024 P Source: CAAA, RBI, SEBI and CCIL 3.26 Government-guaranteed external debt as a ratio to non-government external debt, as well as total external debt, has been on a declining trend for the last few years. In the end of March 2024, the ratio of Government debt to non-government debt declined to 2.0 per cent from 2.3 per cent a year ago. Similarly, the ratio of government-guaranteed external debt to total external debt declined from 1.6 per cent to 1.8 per cent during the period. PROJECTIONS OF SOVEREIGN EXTERNAL DEBT SERVICE PAYMENTS 3.27 The projection related to the debt service payments on government (sovereign) external debt is presented in Annex XXII. The projection provides information on the expected amounts and timing of future principal repayments and interest payments. The monitoring of the debt- service payment schedule for the SED is essential for debt management strategy and to ensure that payments are made on a timely basis. 373.28 The debt service payment for government debt is projected to increase to US$ 12.8 billion in 2024-25, comprising principal repayment of US$ 8.5 billion and interest payment of US$ 4.2 billion (Table 3.1) (Annex XXII). Table 3.1: Projections of Sovereign External Debt Service Payments : Creditor-wise (US$ Billion) Beyond 2027- Component 2024-25 2025-26 2026-27 2027-28 28 Multilateral 7.4 8.3 8.6 8.5 57.5 Multilateral share in total (%) 58.1 58.4 49.0 54.9 50.6 Principal 5.7 6.6 6.9 6.8 40.5 Interest 1.7 1.8 1.8 1.7 17.0 Bilateral 2.5 2.2 2.1 2.3 28.5 Bilateral share in total (%) 19.4 15.5 12.1 14.7 25.1 Principal 2.1 1.8 1.7 1.9 21.3 Interest 0.4 0.4 0.4 0.4 7.3 Other Govt. Debt (OGD)* 2.9 3.7 6.9 4.7 27.7 OGD share in total (%) 22.4 26.1 38.9 30.4 24.3 Principal 0.7 1.7 4.9 3.1 19.9 Interest 2.1 2.1 1.9 1.6 7.7 Total SED Service Payments 12.8 14.2 17.6 15.4 113.7 Principal 8.5 10.0 13.6 11.8 81.7 Interest 4.2 4.2 4.1 3.7 32.0 Source: CAAA and CCIL. * Converted into US$ million with the exchange rate as on 28th March 2024. Note: 1. Bilateral includes export credit component of bilateral credit and civilian rupee debt. 2. Other Govt. Debt includes FPI investment of Govt. Securities and State Development Loans. 3. Debt Service Payment for SDR and Defence Debt are not included in this table. 4. The projections do not include debt service arising out of Committed Undisbursed Balance (CUB) and fresh borrowings. 3.29 Debt service payment to multilateral and FPI investors is expected to peak in 2026-27. The debt service payment to multilateral agencies would taper off thereafter. The projected trend of debt service payment to bilateral investors is uneven. The projected distribution of debt service payments to different creditors’ categories is in line with their share of total external debt outstanding. 38CONCLUSION 3.30 SED has increased at end-March 2024 compared to end-March 2023 mainly due to increased outstanding for FPI investment in G-sec which accounts for 76.3 per cent increase in SED outstanding. This increase is in line with the calibrated policy approach to encourage foreign investment. Another component responsible for this increase is the increase in debt outstanding under external assistance, as disbursement was higher than repayments. Debt service payments in 2023-24 were higher than 2022-23 due to increased debt service payments to multilateral agencies and bilateral countries. ……… 39Chapter 4: India’s External Debt Service Payments India’s gross external debt service payments were higher at US$ 63.0 billion in 2023-24 than US$ 49.2 billion during the previous year, recording an increase of 28.0 per cent. Principal repayments increased to US$ 35.9 billion from US$ 29.6 billion. Interest payments increased to US$ 27.1 billion from US$ 19.7 billion. Principal repayment accounted for 57.0 per cent of India’s total external debt service payments during the year under review, while the rest (43.0 per cent) was on account of interest payments. The large increase in interest payments in 2023- 24 from the level of US$19.7 billion in 2022-23 emanated from an increase in interest payments to the official creditors by 118.6 per cent and an increase in interest payment of commercial borrowings (CBs) by 33.1 per cent. Among the sources of debt, CBs are the costliest, with an implicit interest rate of 7.1 per cent, followed by NRI deposits (5.6 per cent) and external assistance (3.7 per cent). The debt service ratio during 2023-24 increased to 6.7 per cent from 5.3 per cent due to an increase in debt service payments. The external debt service payments arising out of the stock of external debt as at end-March 2024 are projected to decline to US$ 59.4 billion in 2024-25 and US$ 40.0 billion in 2025-26. The debt service payment obligations arising out of stock of external debt as of end-March 2024 are projected broadly to trend downwards over the coming years. INTRODUCTION 4.1 This chapter examines India’s external debt service payments, terms of borrowings and external debt service payment projections. The debt service ratio is measured by the proportion of gross external debt service payments (principal and interest) to external current receipts. It indicates the extent of pre-emption of forex resources for the purposes of repayment of principal and interest on the stock of foreign debt. Further, an analysis of the projection of external debt service payments is useful from the standpoint of future cash flow management. INDIA’S EXTERNAL DEBT SERVICE PAYMENTS 4.2 India’s external debt service payments increased by 28.0 per cent to US$ 63 billion in 2023-24 over the level of US$ 49.2 billion during the previous year. Principal repayments increased by 21.5 per cent to US$ 35.9 billion. Interest repayments increased significantly by 4037.8 per cent to US$ 27.1 billion during 2023-24. The amount of principal repayments is affected by factors such as disbursements and repayments, exchange rates, etc. However, as explained in para 4.9, the increase in the rate of interest appeared to be the main reason for the increase in interest component in FY 2024. Principal repayments accounted for 57.0 per cent of total external debt service payments in 2023-24, while the rest (43.0 per cent) was on account of interest payments. In FY 2023, principal repayments accounted for 60.1 per cent of total external debt service payments. (Figure 4.1) Figure 4.1: External Debt Service Payments – Total, Principal and Interest 70 63.0 Total Debt Service Principal Interest 60 49.4 49.2 50 44.3 43.3 44.6 40.9 41.8 41.6 n o illiB 40 30.9 30.0 30.1 34.0 29.6 35.9 $ 30 26.5 27.1 S U 23.6 23.2 20 17.3 18.6 19.7 13.4 13.4 14.5 15.4 15.1 10 0 6 7 8 9 0 1 2 3 4 1 1 1 1 2 2 2 2 2 - - - - - - - - - 5 6 7 8 9 0 1 2 3 1 1 1 1 1 2 2 2 2 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 Source: RBI 4.3 As seen from Figure 4.2, the debt service ratio, measured by the proportion of total debt service payments to current receipts of Balance of Payments, increased to 6.7 per cent in 2023- 24 from 5.3 per cent during the previous year. The increase in gross external debt service payments during 2023-24 was due to the combined impact of the increase in all components of external debt (Annex XI). 41Figure 4.2: External Debt Service Payments and Debt Service Ratio 70 Total Debt Service Debt Service Ratio (%) 10 63.0 9 60 8 50 6.7 7 n 6 o illiB40 5 tn e c r $30 e P S 4 U 20 3 2 10 1 0 0 6 7 8 9 0 1 2 3 4 1 1 1 1 2 2 2 2 2 - - - - - - - - - 5 6 7 8 9 0 1 2 3 1 1 1 1 1 2 2 2 2 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 Source: RBI and CAAA. 4.4 Debt service payments towards commercial borrowings accounted for the largest share of 71.9 per cent of total external debt service payments during 2023-24. Compared to 2022- 2023, debt service payments for commercial borrowings increased by 28.4 per cent on account of a 26.0 per cent increase in principal repayments and a 33.1 per cent increase in interest amount. Debt service payments to official creditors for the loan under external assistance constitute the second largest component, with a 15.7 per cent share in total debt service payments, increased by 29.4 per cent. The interest component of debt service payments for external assistance has increased significantly by 118.6 per cent during the period compared to a 3.8 per cent increase in principal repayments. Interest paid for NRI deposits constituted 12.3 per cent of total debt service payments during 2023-24. Compared to 2022-2023, interest paid for NRI deposits increased by 24.4 per cent (Figure 4.3) (Annex XI)10. 4.5 The data on creditor-wise debt service payments are presented in Annex XII. As can be seen therein, external debt service payments to commercial creditors at US$ 43.4 billion in 10 Commercial borrowings include borrowings through multilateral and bilateral sources, export credit, commercial loans, securitized instruments, FCCB and IFC and FPI debt Investments (in G-Sec plus corporate bonds) and banks’ overseas borrowings or securitized borrowings of commercial banks. 422023-24 constitute 68.9 per cent of total debt service payments. This was followed by multilateral lenders at US$ 9.0 billion (14.3 per cent) (Figure 4.3)11. Figure 4.3: Composition of India’s External Debt Service Payments External Assistance Commercial Borrowings NRI Deposits Rupee Debt 100% 80% 60% 75.8 75.1 74.8 68.6 67.7 76.5 72.7 71.7 71.9 40% 20% 0% 6 7 8 9 0 1 2 3 4 1 1 1 1 2 2 2 2 2 - - - - - - - - - 5 6 7 8 9 0 1 2 3 1 1 1 1 1 2 2 2 2 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 Source: RBI 4.6 The principal repayments for short-term debt are not included in total external debt service payments, which aligns with the best international practice because trade credit, which constitutes a major chunk of the short-term credit, can be easily rolled over. Net disbursement (gross disbursement minus principal repayments) on short-term debt is a useful indicator of rollover risk in the event of external shocks. Table 4.1 below presents the relevant data. As is evident from the Table, net disbursements were negative during years of import contraction. As mentioned in Chapter 2, merchandise imports fell in 2023-24 by 5.7 per cent; as a result, the net disbursement contracted by 5.9 per cent. Evidently, access to trade credit was in sync with the import performance over the years, indicating thereby that the roll-over risk of short- term trade credit for India is muted. 11 Commercial lenders through commercial loans, securitized instruments, FCCB and IFC and FPI debt Investments (in G-Sec plus corporate bonds) and banks’ overseas borrowings or securitized borrowings of commercial banks. 43Table 4.1: Disbursements and Principal Repayments under Short-term Debt (US$ billion) Year Disbursements Principal Repayments Net 2013-14 100.1 105.2 -5.0 2014-15 89.7 89.8 -0.1 2015-16 90.0 91.7 -1.6 2016-17 91.5 85.0 6.5 2017-18 100.5 86.6 13.9 2018-19 43.3 41.3 2.0 2019-20 38.8 39.8 -1.0 2020-21 37.4 41.5 -4.1 2021-22 64.4 44.3 20.1 2022-23 68.3 61.8 6.5 2023-24 56.1 62.0 -5.9 Source: RBI. TERMS OF BORROWINGS 4.7 This section examines the terms of borrowings of India’s external debt involving implicit interest rates on various sources of debt and average terms of new commitments/ loans. Implicit Interest Rate 4.8 Implicit interest rate is calculated by taking interest payments during the year as a percentage of the outstanding debt at the end of the previous year. The implied rate of interest throws light on the comparative cost of debt across sources. 4.9 Table 4.2 presents implicit interest rates on external assistance, NRI deposits, and commercial borrowings – the three leading sources of India’s external debt. The implied rate of interest on the total external debt for 2023-24 is estimated at 4.3 per cent compared to 3.2 per cent in 2022-23. Debt service payments of external assistance increased by 29.4 per cent, mainly due to a significant increase in the interest by 118.6 per cent in 2023-24 compared to its level in FY 2023. It can be seen from Table 4.2 that the implicit rate of interest in FY 2024 was more than double at 3.7 per cent, then 1.7 per cent in FY 2023. The rate of interest for commercial borrowings also increased to 7.1 per cent in FY 2024 compared to 5.2 per cent in FY 2023. Similarly, the rate of interest with respect to NRI deposits increased to 5.6 per cent from 4.5 per cent during the period. 44Table 4.2: Implicit Interest Rates on India’s External Debt – Source-wise (Per cent) 2016- 2017- 2018- 2019- 2020- 2021- 2022- 2023- Source 17 18 19 20 21 22 23 24 External Assistancea 1.3 1.6 1.9 2.1 1.8 1.2 1.7 3.7 Non-resident Deposits 4.4 4.7 5.1 5 3.5 3.3 4.5 5.6 Commercial 3.8 4.6 4.7 5.2 4.3 4.2 5.2 7.1 Borrowings Total Debt Service 2.8 3.1 3.3 3.4 2.8 2.6 3.2 4.3 a: Inclusive of non-government account figures supplied by the Office of Controller of Aid, Accounts & Audit, DEA, Ministry of Finance. Source: RBI and CAAA. Average Terms of New Commitments 4.10 World Bank compiles terms of new commitments/loans contracted – both from official and private sources – during any given year. Terms include interest rate, maturity, and grace period. Such data on the average terms of new commitments to India shows that in terms of maturity, it is still markedly favourable to avail credit from official creditors than private creditors. Among the new loans contracted during 2022, loans from official creditors had, on average, a much higher maturity period of 24.4 years than 6.6 years for loans from private sources. Likewise, on average, the interest rate charged by the official creditors for the new loans contracted in 2022 was lower at 0.9 per cent than the 2.7 per cent charged by the private creditors. Further, loans from official creditors during 2022 had, on average, a longer grace period of 6.8 years than 5.3 years for private creditors (Table 4.3). Table 4.3: Average Terms of New Commitments for India Official Creditors Private Creditors Year Interest Maturity Grace Period Interest Maturity Grace Period (Per cent) (Years) (Years) (Per cent) (Years) (Years) 2009 1.0 27.6 6.5 3.6 3.5 2.5 2010 0.8 30.8 8.4 2.3 6.5 3.6 2011 1.0 25.1 5.0 2.9 7.6 5.8 2012 2.2 22.8 6.1 3.6 6.9 6.2 2013 1.1 28.6 7.4 2.3 5.2 4.1 2014 1.8 21.5 5.7 2.9 6.4 5.0 2015 1.5 21.9 5.4 2.2 5.6 5.1 2016 1.5 24.9 7.5 2.8 7.1 6.4 2017 1.6 23.4 7.3 2.8 7.2 6.9 2018 1.9 28.3 8.0 2.9 5.3 5.2 2019 2.5 22.8 5.4 3.7 5.7 5.6 2020 1.0 21.5 6.0 2.7 8.4 7.8 2021 0.7 20.4 5.9 1.8 7.7 6.3 2022 0.9 24.4 6.8 2.7 6.6 5.3 Source: International Debt Statistics 2023, World Bank. 45PROJECTIONS OF EXTERNAL DEBT SERVICE PAYMENTS 4.11 Projections of external debt service payments are presented in Table 4.4 below. The external debt service payments during the current year (2024-25) are projected to decline to US$ 59.4 billion, comprising principal repayments of US$ 47.6 billion and interest payments of US$ 11.8 billion. Table 4.4: Projections of External Debt Service Payments – Creditor-wise (US$ Billion) 2024- 2025- 2026- 2027- 2028- 2029- 2030- 2031- 2032 Component 25 26 27 28 29 30 31 32 Onwards Multilateral# 9.3 9.7 10.4 9.9 9.3 9.0 8.4 7.5 30.7 Principal 7.2 7.7 8.3 8.0 7.5 7.3 6.9 6.1 18.8 Interest 2.1 2.0 2.1 2.0 1.9 1.7 1.5 1.3 11.9 Bilateral# 3.8 3.2 3.0 3.0 3.2 3.3 3.2 3.2 19.0 Principal 3.3 2.7 2.5 2.5 2.8 2.8 2.8 2.8 13.2 Interest 0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.4 5.8 Export Credit 2.1 0.3 0.2 0.1 0.4 0.1 0.0 0.0 0.0 Principal 2.0 0.2 0.1 0.1 0.3 0.1 0.0 0.0 0.0 Interest 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Commercial 44.1 26.8 31.4 29.3 28.0 15.1 8.5 8.3 62.5 Borrowings Principal* 35.1 19.6 25.4 24.8 25.1 13.0 7.0 7.3 12.8 Interest** 9.0 7.2 5.9 4.5 2.9 2.0 1.5 1.0 49.6 Total Debt Service: 59.4 40.0 44.9 42.3 41.0 27.4 20.2 18.9 112.1 Principal 47.6 30.2 36.4 35.4 35.7 23.2 16.7 16.2 44.8 Interest 11.8 9.8 8.5 7.0 5.3 4.2 3.4 2.7 67.3 Source: RBI, CAAA and CCIL. # The projections are based on original amortization schedule as per loan agreements. The actuals/projections will vary based on the debt servicing by Non-Govt. entities (PSUs). * Includes commercial loans, securitized instruments, FCCB and loans from IFC. ** Includes commercial loans, securitized instruments, FCCB and loans from IFC and FPI Investment in G-Sec. FPI Investment in G-Sec converted into US$ with the exchange rate as on 31st March 2024. Bilateral component also includes export credit component of bilateral credit and civilian rupee debt. Debt service payments arising out of T-bills, SDRs, FPI investments in corporate debt, securitized borrowings by banks, NRI deposits, short-term debt, government-guaranteed non- government debt and defence debt, not included. Projections are based on the debt outstanding as at end-March 2024. 4.12 The external debt service payments for the next year (2025-26) are estimated to be further lower at US$ 40.0 billion, with lower principal repayments of US$ 30.2 billion and 46interest payments of US$ 9.8 billion. The estimated drop in external debt service payments during 2025-26 reflects lower principal repayments of commercial borrowings. Over the years, external debt service payments are broadly projected to trend downwards. 4.13 To sum up, this Chapter documents that the external debt service payments during the year under review were higher due to higher interest rates and other factors. The projections of debt service payments arising out of the stock of external debt as of the end of March 2024 into the future indicate that such payments would have a downward trend and would be comfortably manageable on the back of the copious reserve cushion. ……… 47Chapter 5: India’s External Debt Position - A Cross-Country Perspective In this Chapter, India’s external debt position is presented from a cross-country perspective. The total external debt of the world as of December 2023 was US$ 102.4 trillion, while that of India was estimated at US$ 646.1 billion, occupying the 24th position globally. The stock of India’s external debt is thus modest from a cross-country perspective. Among Emerging Market and Developing Economies (EMDEs), India as at end-December 2023, was the third largest externally indebted country following China and Brazil. In terms of various debt vulnerability indicators, India’s debt sustainability was better than that of the low- and middle-income countries (LMICs) as a group and vis-à-vis many of them individually. India’s external debt position among LMICs based on various sustainability indicators improved further in terms of the present value arrived at by discounting the nominal value of all future debt service payments. 5.1 This chapter presents India’s external debt from an international perspective, both with respect to the Advanced Economies (AEs) and the Emerging Market and Developing Economies (EMDEs). Global data on external debt is sourced from the Quarterly External Debt Statistics (QEDS) and the International Debt Statistics (IDS) of the World Bank12. GLOBAL EXTERNAL DEBT 5.2 In 2023, global external debt increased by 4.9 per cent to US$ 102.4 trillion at the end of December 2023 compared to US$ 97.6 trillion at the end of December 2022. AEs accounted for 91.6 per cent of this increase. The external debt of AEs, which constitutes 88.1 per cent of global external debt stock, increased by 5.1 per cent to US$ 90.3 trillion, and that of EMDEs increased by 3.4 per cent to US$ 12.2 trillion (Figure 5.1). 12 In October 2014, the World Bank in collaboration with the International Monetary Fund (IMF), launched the new Quarterly External Debt Statistics (QEDS) SDDS and GDDS database in line with the classifications and definitions of the 2013 External Debt Statistics: Guide for Compilers and Users (2013 EDS Guide) and Sixth Edition of Balance of Payments and International Investment Position Manual (BPM6). The latest QEDS data is available for the quarter ending December 2023. 48Figure 5.1: Global External Debt (at end-December) EMDEs AEs Global Debt 120 102.4 99.8 97.6 100 80 n o illir 60 T $ 87.8 85.9 90.3 S U 40 20 12.1 11.8 12.2 0 2021 2022 2023 Note: Country groupings as per World Economic Outlook, IMF Source: Quarterly External Debt Statistics, World Bank 5.3 The United States is the most externally indebted country in the world, with total external debt stock estimated at US$ 26.0 trillion (25.4 per cent of the global external debt stock), followed by the UK (9.4 per cent), France (7.5 per cent), Germany (6.6 per cent) and Japan (4.4 per cent). China is the only EMDE on the list of the top 20 indebted countries. The total external debt stock of the top 20 debtor countries in the world constituted 86.5 per cent of the world external debt stock at end-December 2023, around the same level as at end-December 2022, indicating concentration of debt flow to few countries. India’s global position remained at the 24th position of end-December 2023 as to end-December 2022 with an estimated external debt of US$ 646.1 billion (Table 5.1) (Annex XV). 49Table 5.1: Gross External Debt Stock of Top 20 Debtor Countries (Figures as of end-December) (US$ Billion unless otherwise indicated) Growth Rate (%) Country 2021 2022 2023 Position 2023 over 2022 2022 over 2021 1 2 3 4 5 6 1 United States 23,314 24,640 25,985 5.5 5.7 2 United Kingdom 9,780 9,162 9,644 5.3 -6.3 3 France 7,255 6,918 7,638 10.4 -4.6 4 Germany 6,995 6,472 6,750 4.3 -7.5 5 Japan 4,639 4,390 4,490 2.3 -5.4 6 Netherlands 4,442 4,191 4,271 1.9 -5.6 7 Luxembourg 3,992 3,739 3,787 1.3 -6.3 8 Ireland 3,332 3,117 3,144 0.9 -6.5 9 Canada 2,801 2,790 3,135 12.3 -0.4 10 Italy 2,794 2,657 2,810 5.8 -4.9 11 Spain 2,647 2,482 2,672 7.7 -6.2 12 China 2,747 2,453 2,448 -0.2 -10.7 13 Switzerland 2,389 2,325 2,278 -2.1 -2.7 14 Singapore 1,867 1,939 1,997 3.0 3.9 15 Hong Kong 1,871 1,779 1,839 3.3 -4.9 16 Australia 1,619 1,539 1,617 5.1 -4.9 17 Belgium 1,497 1,406 1,530 8.8 -6.1 18 Sweden 1,024 974 1,042 6.9 -4.8 19 Austria 754 710 784 10.4 -5.8 20 Norway 727 770 770 0.1 5.9 Memo Item: 24 India 613 612 646 5.6 -0.2 Total Global 99,813 97,636 102,432 4.9 -2.2 External Debt Source: QEDS, World Bank 5.4 Except Switzerland and China, all other countries in the list of top 20 indebted countries of the world reported an increase in their external debt position during 2022 and 2023. Canada has reported a maximum increase in its external debt position (by 12.3 per cent). Among the top 20 indebted countries, Norway reported a maximum increase in the ratio of the stock of external debt to GDP (by 22.4 per cent) in 2023 over 2022 (Figure 5.2). 50Figure 5.2: External debt to GDP ratio of top 20 debtor countries (at end-December) 700 25 2022 2023 % Difference from 2022 to 2023 600 20 500 15 400 10 tn 300 tn e e c 5 c r e 200 r e P P 0 100 -5 0 -100 -10 -200 -15 Note: Luxembourg, with an external debt-to-GDP ratio of 4414.9 per cent, is the outlier of the group. Source: QEDS, World Bank and World Economic Outlook, IMF Global External Debt: Maturity-Wise 5.5 About 97.8 per cent of the total external debt of around 79 countries is reported through IMF’s SDDS, for which maturity-wise data is available in QEDS, World Bank. About 40.2 per cent share of global external debt is short-term external debt as of the end of December 2023. The share of short-term debt in the total external debt of the top 20 externally indebted countries ranged from 72.3 per cent for Japan to 23.5 per cent for the Netherlands. Short-term external debt is more than long-term external debt in Japan, the UK, Singapore, Hong Kong, and China, which are among the top 20 externally indebted countries. Global Stock of External Debt: Sector-Wise 5.6 Sector-wise data is available for about 97.8 per cent of the total external debt of 79 countries, which is reported through IMF’s SDDS. “Deposit-taking Corporations except the Central Bank” have the highest share in the total external debt (30.8 per cent). In Singapore, Hong Kong, Denmark, the UK, France, Norway, Sweden, and Finland, more than half of the external debt were borrowed by “Deposit Taking Corporations except the Central Bank” at the 51end of December 2023. Other sectors (Other financial corporations, non-financial corporations and NPISH) have the next highest share (29.2 per cent) in the total external debt stock. In Ireland and Thailand, more than half of the country’s external debt belongs to the other sector. “General Government” of these 79 countries held 21.5 per cent of total external debt. In Ecuador, 77.8 per cent of external debt belongs to the general government. After Ecuador, in Sri Lanka (60.4 per cent), Ukraine (59.5 per cent), Philippines (56.6 per cent), West Bank and Gaza (56.4 per cent), Argentina (54.2 per cent), and Egypt (50.5 per cent), more than half of external debt belongs to the general government (Figure 5.3). Figure 5.3: External debt of top 20 debtors as of end-December 2023: Sector-wise 100% 80% 60% 40% 20% 0% General Government Central Bank Deposit-Taking Corp., exc. CB Other Sectors DI: Intercom Lending Source: QEDS, World Bank EXTERNAL DEBT OF EMDEs13 5.7 External Debt stock of all EMDEs increased by 3.4 per cent to US$ 12.2 trillion in 2023 against a decrease in 2022. The ratio of external debt stock to GDP and export of goods and services increased to 29.8 per cent and 103.1 per cent, respectively, in 2023, as compared to 29.0 per cent and 95.2 per cent in 2022. China was the world's most externally indebted EMDE, with a stock of external debt at US$ 2.4 trillion, accounting for 20.1 per cent of the total external 13 This section explains the external debt position of EMDEs. The list of EMDE countries has been taken from the IMF, and external debt data has been taken from QEDS and the World Bank. India is an EMDE as well as an LMIC. 52debt of all EMDEs as of December 2023. Following China are Brazil (6.0 per cent), India (5.3 per cent) and Mexico (4.9 per cent). The total external debt stock of the top 20 debtor EMDEs constitutes about 71.7 per cent of the total external debt stock of all EMDEs. Among the top 20 debtor EMDEs, China, Russia, and Thailand reported a reduction in their external debt stock during 2023 (Table 5.2). Table 5.2: Gross External debt stock of EMDEs@ (Figures as of end-December) (US$ Billions, unless otherwise indicated) Growth Rate (%) Country Name 2021 2022 2023 2023 over 2022 2022 over 2021 1 2 3 4 5 6 1 China 2747 2453 2448 -0.2 -10.7 2 Brazil 670 681 733 7.6 1.6 3 India 613 612 646 5.6 -0.2 4 Mexico 602 582 594 2.0 -3.3 5 Turkiye 435 457 500 9.5 5.0 6 Poland 366 370 429 15.9 1.3 7 Indonesia 414 397 408 3.0 -4.2 8 Russian Federation 488 385 317 -17.7 -21.2 9 Saudi Arabia 275 267 300 12.5 -3.0 10 Argentina 266 276 288 4.2 3.7 11 Hungary 267 274 279 1.7 2.9 12 Malaysia 259 259 271 4.3 0.3 13 Chile 235 230 241 4.8 -2.4 14 Mauritius 171 189 197 4.1 10.5 15 Colombia 171 184 196 6.7 7.3 16 Thailand 196 200 194 -3.0 2.1 17 Romania 155 153 188 22.5 -0.8 18 Egypt, Arab Rep. 146 163 168 3.1 12.0 19 Kazakhstan 165 161 163 1.3 -2.5 20 Ukraine 130 131 162 23.3 1.0 Total External 12055 11762 12163 3.4 -2.4 Debt of all EMDEs @ According to the IMF classification For country-wise data of EMDEs, as per World Bank classification, see Annex 14 Source: QEDS, World Bank 53EXTERNAL DEBT OF LMICs14 5.8 World Bank’s International Debt Report, 2023 observed that due to negative debt flow and appreciation of the US Dollar against major currencies, the external debt stock of LMICs fell in 2022 for the first time since 2015. It further highlights the considerable risk of an intensifying debt crisis, with slowing growth and tight monetary policy putting additional pressure on LMICs. 5.9 Data on external sector vulnerability indicators is available till 2022 from the World Bank’s International Debt Statistics (IDS) 2023. External debt stock of LMICs decreased by 3.4 per cent in 2022 compared to its level in 2021. The Gross National Income (GNI) of these countries, on the other hand, rose by 5.9 per cent over the same period. Consequently, the ratio of external debt to GNI declined by 2.3 per cent points. The ratio of external debt to export earnings showed a similar pattern as export earnings from goods, services, and primary income increased by 9.9 per cent in 2022. The ratio of external debt to export has declined by 12.1 per cent points. The ratio of foreign exchange reserves to external debt, on the other hand, slightly moderated by 1.4 per cent points (Figure 5.4). Figure 5.4: Selected external debt sustainability indicators: LMICs (at end-December) Ratio of External Debt to Export Ratio of External Debt to GNI 140 Ratio of Foreign Exchange Reserve to external debt (RHS) 140 122.8 120 120 107.1 102.1 101.1 100 100 89 82.7 80 80 60 60 40 22.7 25.9 26.5 28.7 26.2 23.9 40 20 20 0 0 2012 2018 2019 2020 2021 2022 Source: International Debt Statistics 2023, World Bank 14 This explains external debt position of LMICs. The data for this section is sourced from the International Debt Report 2023, World Bank. India is an EMDE as well as LMIC. 545.10 The sustainability indicators of India’s external debt are better than most of the LMICs. In the group of top 20 debtor LMICs, ratios of external debt to export and GNI were lower, and the ratio of reserves to external debt was higher than in most of the countries (Figure 5.5). External Debt to GNI 5.11 The ratio of external debt stock to GNI15 provides some indication of the potential to service external debt by switching resources from domestic goods to the production of exports and is a good indicator of external debt burden. India, with an improved ratio of 18.4 per cent in 2022 (from 19.6 in 2021), occupies third place among the 20 most indebted LMICs. Share of Short-Term Debt 5.12 The share of short-term debt in the total stock of external debt is an important metric to analyse potential debt vulnerability. In 2022, the ratio of short-term external debt to total external debt stock was 26.2 per cent for LMICs. India, with a 20.9 per cent ratio, is better positioned than China, Thailand, Turkey, Vietnam, South Africa, and Nigeria in the group of most indebted LMICs. Figure 5.5: Select External Debt Indicators at end-December 2022 - LMIC vs India a. Total External Debt to GNI b. Short Term debt to External Debt China Pakistan Russian… Mexico India Kazakhstan Bangladesh Colombia Nigeria Ukraine Philippines Brazil Indonesia Peru Brazil Indonesia Pakistan Philippines Egypt, Arab Rep. Russian Federation Viet Nam Egypt, Arab Rep. Peru Bangladesh Thailand Argentina Argentina India Mexico Nigeria South Africa South Africa Turkiye Viet Nam Colombia Turkiye Kazakhstan Thailand Ukraine China 0 50 100 0 20 40 60 Per cent Per cent 15 World Bank uses GNI in place of GDP for measuring the indicator. 55c. Forex Reserves to External Debt d. External Debt to Exports 350 180 160 300 140 250 120 200 100 150 80 60 100 40 50 20 0 0 Source: International Debt Statistics 2023, World Bank Forex Reserves to External Debt 5.13 About 72.9 per cent of the total external debt stock of LMICs is covered by foreign exchange reserves in 2022. Among the top 20 debtor LMICs, the ratio of foreign exchange reserves to external debt stock ranges from 7.8 per cent for Pakistan to 154.7 per cent for Russia. India, with a 91.2 per cent ratio, is better than all the countries in the group except Russia, China, and Thailand in 2022. External Debt to Exports 5.14 The ratio of total outstanding external debt at the end of the year to countries’ export of goods and services is also a good indicator of the capacity to repay. India, with a ratio of 77.6 per cent, is placed at 5th position after Vietnam, Russia, Thailand, and China among the top 20 debtor LMICs. PRESENT VALUE OF EXTERNAL DEBT 5.15 The concept of Present Value (PV) is a useful measure of assessing indebtedness. The PV of external debt outstanding is arrived at by discounting the nominal value of all future debt service payments by the prevailing market rates of interest and aggregating such PVs. The interest rates used in the calculations are the Commercial Interest Reference Rates for each 56relevant currency compiled and published by the Organization for Economic Cooperation and Development (OECD).16 5.16 India turns out to be less externally indebted if measured in terms of present value. It shifts from 2nd position to 4th position as the most indebted LMIC when measured in terms of present value. Similarly, the external debt to exports ratio shifts from the 5th to 6th position if measured in terms of present value (Figure 5.6 and Annex XIII). Figure 5.6: Select Indicators of Present Value of External Debt – Top 20 LMIC Debtor Countries at end-December 2022 Present value of ED (US$ billions) Present value of debt to exports of goods and service (%) 450 40 400 35 350 30 n300 o illiB250 22 05 tn e c $200 r e S 15P U150 10 100 50 5 0 0 Source: International Debt Statistics 2023, World Bank CONCLUSION 5.17 This chapter has analysed public debt from a cross-country perspective based on data available from the World Bank and the IMF. From a cross-country perspective, India’s external debt position is comfortable based on the standard set of indicators of debt vulnerability, measured both in terms of nominal and present value. ……… 16 International Debt Report 2023, World Bank 57Annexures Annexure I: External Debt: Definitions, Concepts and Dissemination of Data I. Definitions and Concepts 1. External Debt Gross external debt is a stock variable and is measured at a point in time. External debt is defined as “the outstanding amount of those actual current, and not contingent, liabilities that require payment(s) of principal and/or interest by the debtor at some point(s) in the future and that are owed to non-residents by residents of an economy” {External Debt Statistics - Guide for Compilers and Users, International Monetary Fund (IMF), 2003}. 2. Original and Residual Maturity (i) Original maturity is defined as the period encompassing the precise time of the creation of the financial liability to its date of final maturity. (ii) Debt by residual maturity (or remaining maturity) includes short-term debt by original maturity of up to one year, combined with medium to long-term debt repayment by original maturity falling due within the twelve-month period following a reference date. External debt is commonly expressed in terms of original maturity. 3. Long and Short-term One way of classifying external debt is the two-way scheme based on duration – long and short- term. Long-term debt is defined as debt with an original maturity of more than one year, while short-term debt is defined as debt repayments on demand or with an original maturity of one year or less. The coverage of short-term was redefined in 2005-06 by including supplier’s credit up to 180 days and FII investment in the Government Treasury Bills and other instruments and further in March 2007 by including external debt liabilities of the banking system and the investment in the Government securities by the foreign central banks and the international institutions. 4. Multilateral and Bilateral Debt 58Multilateral creditors are primarily multilateral institutions such as the International Development Association (IDA), International Bank for Reconstruction and Development (IBRD), Asian Development Bank (ADB) etc. Bilateral creditors are sovereign countries with whom sovereign and non-sovereign entities enter into one-to-one loan arrangements. Some of India’s bilateral creditors who extend loans to both sovereign and non-sovereign debtors include Japan, Germany, the United States, France and the Russian Federation. 5. Sovereign (Government) and Non-Sovereign (Non-Government) debt Sovereign debt includes (i) external debt outstanding on account of loans received by the Government of India under the ‘external assistance’ programme and civilian component of Rupee Debt; (ii) other Government debt comprising borrowings from IMF, defence debt component of Rupee debt as well as foreign currency defence debt and FII investment in Government Securities. Non-sovereign debt includes the remaining components of external debt. 6. Trade Credits/Export Credits Trade credits/Export credits refer to loans and credits extended for imports directly by overseas suppliers, banks and financial institutions to sovereign and non-sovereign entities. Depending on the source of finance, such credits can be either suppliers’ credit or buyers’ credit. (i) Suppliers’ Credit: Such credit is extended by the overseas supplier of goods in the form of deferred payments. (ii) Buyers’ Credit: Such credit is provided by a bank or financial institution and is generally governed by OECD consensus terms. It also carries insurance from the export credit agency of the concerned country. 7. External Commercial Borrowings The definition of commercial borrowing includes loans from commercial banks and other commercial financial institutions, money raised through the issue of securitised instruments like bonds (including India Development Bonds (IDBs) and Resurgent India Bonds (RIBs)), Floating Rate Notes (FRN) and securitised borrowings of commercial banks, etc. It also includes borrowings through buyers' credit & suppliers’ credit mechanisms of the concerned countries, International Finance Corporation, Washington [IFC (W)], Nordic Investment Bank and private sector borrowings from the Asian Development Bank (ADB). 598. NRI Deposits Non-Resident Indian (NRI) deposits are of three types: (i) Non Resident (External) Rupee Account {NR(E)RA} Deposits were introduced in 1970. Any NRI can open an NRE account with funds remitted to India through a bank abroad. An NRE account maintained in Indian rupee may be opened as a current, savings or term deposit. The amount held in these deposits, together with the interest accrued, can be repatriated. (ii) Foreign Currency (Non-Resident) (Banks) Deposits {FCNR (B)} was introduced with effect from May 15, 1993. These are term deposits maintained only in Pound Sterling, U.S. dollar, Japanese Yen, Euro, Canadian dollar and Australian dollar. The minimum maturity period of these deposits was raised from six months to 1 year, effective October 1999. From July 26, 2005, banks have been allowed to accept FCNR (B) deposits up to a maximum maturity period of five years against the earlier maximum limit of three years. (iii) Non-Resident Ordinary Rupee (NRO) Accounts – Any person resident outside India may open and maintain an NRO account with an Authorised Dealer or in the authorised bank for the purpose of putting through bonafide transactions denominated in Indian Rupees. NRO Accounts may be opened/maintained in the form of current, saving, recurring or fixed deposits. NRI/Persons of Indian Origin (PIO) may remit an amount not exceeding USD 1 million per financial year out of the balances held in NRO Accounts. 9. Concessional Debt Generally, a loan is defined as ‘concessional’ when it carries a grant element of 25 per cent or more. In India, loans from multilateral (International Development Association (IDA), International Fund for Agricultural Development (IFAD)) and bilateral sources (including rupee debt that is serviced through exports) are categorised as ‘concessional’, based on their terms of long maturity and less-than-market rate of interest charged on them. 6010. External Debt from Official and Private Creditors External debt from multilateral and bilateral sources of finance, export credit component of bilateral credit, export credit for defence purposes, rupee debt, etc., is called official debt. External debt from private creditors denotes sources of loans raised under ECBs, NRI deposits, export credits (other than those included under official creditors), and short-term debt. 11. External Debt to GDP Ratio The ratio of the external debt stock to GDP is derived by scaling the total outstanding debt stock (in rupees) at the end of the financial year by the GDP (in rupees at current market prices) during the financial year. 12. Debt Service Ratio The debt service ratio is measured by the proportion of total debt service payments (i.e. principal repayment plus interest payment) to current receipts (minus official transfers) of Balance of Payments (BoP). It indicates the claim that servicing of external debt makes on current receipts and is, therefore, a measure of strain on BoP due to servicing of debt service obligations. 13. Borrower Classification of External Debt The borrower classification of external debt provides a breakup into Government (Sovereign) and non-government debt. The latter is further categorised into financial, public and private sectors. The financial sector represents borrowings by banks and financial institutions, including long-term NRI Deposits. Public sector debt represents borrowings of non-financial public sector enterprises, and private sector debt represents borrowings of non-financial private sector enterprises. 14. External Debt Denominated in Rupee Currency Unlike foreign currency-denominated external debt, where the currency (exchange rate) risk is borne by the borrower, the characteristic feature of domestic currency-denominated debt is that the exchange rate risk is borne by the creditor. The contractual liability, however, is settled in terms of the designated foreign currency (Exports in case of Rupee debt owed to Russia). This implies that the borrower gains (and the creditor loses) when the local currency depreciates since less has to be repaid in foreign currency terms and vice versa. 61India’s External Debt denominated in Rupees consists of the following categories:- (i) Rupee Debt: The outstanding state credits (both defence and civilian) extended to India by the erstwhile Union of the Soviet Socialist Republic (USSR). The debt is denominated in Rupees, and repayment of such debt is made primarily through the export of goods to Russia; (ii) Rupee Denominated NRI Deposits viz. the Non-Resident (External) Rupee Account {NR(E)RA} and the Non-Resident Ordinary Rupee (NRO) Accounts. The NR(E)RA is categorised as an external debt liability since the principal amount held in such accounts, as well as the interest accrued, are repatriable; (iii) Foreign Institutional Investor’s (FII) Investments in Government Treasury Bills (TBs) and dated securities; and (iv) FII Investments in corporate debt securities. II. Dissemination of External Debt Statistics in India (i) The Government of India has been publishing the Status Report on India’s external debt annually since 1993. The coverage of external debt statistics has been expanded over the years to align it with the best international practices and make it more comprehensive. India has also been disseminating data on external debt under the IMF’s Special Data Dissemination Standards (SDDS) and Quarterly External Debt Statistics (QEDS) database jointly developed by the World Bank and the International Monetary Fund. (ii) The external debt statistics of India are disseminated with a lag of three months from the end of the reference quarter in both the country-specific and SDDS format and are accessible at www.finmin.nic.in and www.rbi.org.in. In November 2006, India joined the ‘Quarterly External Debt Statistics’ database, jointly developed by the World Bank and International Monetary Fund and has been compiling external debt statistics in the QEDS format every quarter and furnishing the same for release on the World Bank’s website. (iii) Under the present arrangement, the External Debt Management Unit (EDMU) in the Ministry of Finance (MoF), Department of Economic Affairs (DEA), Government of India compiles external debt data for the quarters ending September and December, 62while the Reserve Bank of India (RBI) compiles and disseminates data for the quarters ending March and June every year. In addition, an annual publication, ‘India’s External Debt: A Status Report’, is brought out by the EDMU, MoF, Government of India. Office of the Controller of Aid Accounts & Audit (CAAA) of the DEA, MoF publishes a report titled ‘External Assistance’, which provides a detailed account of external assistance received by the Government of India in the form of loans/credits and grants from foreign countries, international institutions and other organisations. It provides donor/country /currency-wise details along with information relating to interest rate structure and maturity profile of external debt availed from multilateral and bilateral creditors. (iv) The data published for the current quarter/year are termed as ‘Provisional’. Provisional data are subject to revision during the next twelve months, which are labelled as ‘Partially Revised’ as and when they are published. The partially revised data are fully ‘frozen’ and released as final data with a lag of twenty-four months from the reference date. Extraordinary revisions are undertaken within the cycle only in the event of methodological changes with respect to data collection and compilation procedures and/or significant changes indicated by data sources that may entail structural shifts in the data series. (v) External debt recording and compilation is done with the aid of the latest version of Commonwealth Secretariat Debt Recording and Management System (CS-DRMS) 2000+ (version 1.3) by the CAAA, DEA, MoF and (Department of Statistics and Information Management (DSIM)) Reserve Bank of India (RBI). About 60 per cent of external debt is recorded in CS-DRMS 2000+, except NRI deposits and short-term debt. Besides, FII investment and defence debt and some minor portions of the external debt are also not under the purview of this computerisation scheme. (vi) The external debt statistics are compiled using the methodology and practices prescribed in the ‘External Debt Statistics: Guide for Compilers and Users’ brought out by the IMF. The coverage of India’s external debt statistics, particularly short-term external debt, has been expanded gradually to make these statistics more comprehensive. In fact, short-term trade credits, which are not adequately captured in external debt statistics of several countries due to conceptual issues and data-related 63problems, are being compiled regularly and included in the short-term debt. To that extent, global comparisons may be problematic in terms of magnitudes. ***** 64Annexure II: Key External Debt Indicators Year External Debt Ratio of Ratio of Ratio of Ratio of Ratio of Debt (US$ Service Foreign Total Concessio Short- Short- Million) Ratio Exchange External nal Debt to term Debt term Debt Reserves Debt to Total Debt t o Foreign to Total to Total GDP Exchange Debt Debt Reserves (Per cent) 1990-91 83,801 35.3 7.0 28.7 45.9 146.5 10.2 1991-92 85,285 30.2 10.8 38.7 44.8 76.7 8.3 1992-93 90,023 27.5 10.9 37.5 44.5 64.5 7.0 1993-94 92,695 25.4 20.8 33.8 44.4 18.8 3.9 1994-95 99,008 25.9 25.4 30.8 45.3 16.9 4.3 1995-96 93,730 26.2 23.1 26.6 44.7 23.2 5.4 1996-97 93,470 23.0 28.3 24.6 42.2 25.5 7.2 1997-98 93,531 19.5 31.4 24.3 39.5 17.2 5.4 1998-99 96,886 18.7 33.5 23.6 38.5 13.2 4.4 1999-00 98,263 17.1 38.7 22.0 38.9 10.3 4.0 2000-01 1,01,326 16.6 41.7 22.1 35.4 8.6 3.6 2001-02 98,843 13.7 54.7 20.8 35.9 5.1 2.8 2002-03 1,04,914 16.0a 72.5 20.0 36.8 6.1 4.5 2003-04 1,12,653 16.1b 100.3 17.7 35.8 3.9 3.9 2004-05 1,34,002 5.9 c 105.6 18.4 30.7 12.5 13.2 2005-06 1,39,114 10.1d 109.0 17.1 28.4 12.9 14.0 2006-07 1,72,360 4.7 115.6 17.7 23.0 14.1 16.3 2007-08 2,24,407 4.8 138.0 18.3 19.7 14.8 20.4 2008-09 2,24,498 4.4 112.2 20.7 18.7 17.2 19.3 2009-10 2,60,935 5.8 106.9 18.5 16.8 18.8 20.1 2010-11 3,17,891 4.4 95.9 18.6 14.9 21.3 20.4 2011-12 3,60,766 6.0 81.6 21.1 13.3 26.6 21.7 2012-13 4,09,374 5.9 71.3 22.4 11.1 33.1 23.6 2013-14 4,46,178 5.9 68.2 23.9 10.4 30.1 20.5 2014-15 4,74,675 7.6 72.0 23.8 8.8 25.0 18.0 2015-16 4,84,791 8.8 74.3 23.4 9.0 23.2 17.2 2016-17 4,71,012 8.3 78.5 19.8 9.4 23.8 18.7 2017-18 5,29,290 7.5 80.2 20.1 9.1 24.1 19.3 2018-19 5,43,112 6.4 76.0 19.9 8.7 26.3 20.0 2019-20 5,58,437 6.5 85.6 20.9 8.8 22.4 19.1 2020-21 5,73,663 8.2 100.6 21.1 9.0 17.5 17.6 652021-22 6,19,076 5.2 98.1 20.0 8.3 20.0 19.7 2022-23 PR 6,24,060 5.3 92.7 19.0 8.2 22.2 20.6 2023-24 P 6,63,760 6.7 97.4 18.7 7.5 19.0 18.5 Source : Reserve bank of India. PR: Partially Revised; P: Provisional a: Works out to 12.4 per cent, with the exclusion of pre-payment of US$ 3.4 billion. b: Works out to 8.2 per cent, with the exclusion of pre-payment of US$ 3.8 billion and redemption of Resurgent India Bonds (RIBs) of US$ 5.5 billion. c : Works out to 5.7 per cent, with the exclusion of pre-payment of US$ 381 million. d Works out to 6.3 per cent, with the exclusion of India Millennium Deposits (IMDs) repayments of US$ 7.1 billion and pre-payment of US$ 23.5 million. 66Annexure III: India's External Debt Outstanding – In Rupees (₹ Crore) Sl. Components of External Debt 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PR 2024 P No. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) I. MULTILATERAL 3,21,560 3,28,148 3,59,490 3,54,118 3,71,783 3,96,131 4,48,824 5,07,314 5,53,703 6,19,321 6,51,131 A. Government Borrowing 2,68,491 2,69,431 2,94,122 2,88,246 3,04,595 3,20,336 3,62,042 4,19,319 4,60,547 5,21,803 5,56,039 (i) Concessional 1,63,589 1,54,581 1,66,506 1,56,726 1,64,002 1,60,421 1,66,300 1,65,241 1,61,129 1,57,806 1,42,175 a) IDA 1,61,165 1,52,171 1,63,772 1,54,050 1,60,970 1,57,188 1,62,506 1,61,408 1,57,206 1,53,736 1,38,007 b) Others 2,424 2,410 2,734 2,676 3,032 3,233 3,794 3,833 3,923 4,070 4,168 (ii) Non-concessional 1,04,902 1,14,850 1,27,616 1,31,519 1,40,593 1,59,915 1,95,742 2,54,077 2,99,418 3,63,996 4,13,865 a) IBRD 53,433 57,107 61,553 60,667 61,663 67,248 82,796 99,216 1,13,578 1,35,746 1,56,760 b) Others 51,469 57,743 66,063 70,852 78,930 92,667 1,12,946 1,54,862 1,85,840 2,28,251 2,57,104 B. Non-Government Borrowing 53,069 58,717 65,368 65,872 67,188 75,795 86,782 87,996 93,155 97,518 95,092 (i) Concessional 0 0 0 0 0 0 0 0 0 0 0 (ii) Non-concessional 53,069 58,717 65,368 65,872 67,188 75,795 86,782 87,996 93,155 97,518 95,092 a) Public Sector 28,105 31,385 35,409 32,123 33,715 39,028 40,927 48,303 49,113 50,016 49,254 i) IBRD 14,412 15,674 17,005 16,625 16,935 18,652 21,544 21,900 23,190 24,088 24,779 ii) Others 13,693 15,711 18,404 15,498 16,780 20,375 19,383 26,404 25,923 25,928 24,475 b) Financial Institutions 18,881 21,859 25,190 29,829 30,231 35,155 42,164 30,051 33,059 36,921 35,855 i) IBRD 3,820 3,709 5,984 7,276 7,418 8,449 8,609 7,885 8,518 8,702 8,359 ii) Others 15,061 18,150 19,206 22,553 22,812 26,706 33,555 22,167 24,541 28,219 27,496 c) Private Sector 6,083 5,473 4,769 3,920 3,242 1,612 3,690 9,641 10,984 10,582 9,983 i) IBRD 0 0 0 0 0 0 0 0 0 0 0 ii) Others 6,083 5,473 4,769 3,920 3,242 1,612 3,690 9,641 10,984 10,582 9,983 II. BILATERAL 1,48,813 1,36,060 1,49,378 1,50,808 1,64,847 2,47,130 2,83,832 2,93,609 1,76,660 2,10,362 2,25,017 A. Government borrowing 96,918 88,452 1,02,925 1,09,742 1,28,945 1,97,997 2,26,725 2,39,668 1,41,410 1,67,494 1,79,101 (i) Concessional 96,918 88,452 1,02,925 1,09,742 1,28,945 1,67,494 1,79,101 1,97,997 2,26,725 2,39,668 1,41,410 (ii) Non-concessional 0 0 0 0 0 0 0 0 0 0 0 B. Non-Government borrowing 51,895 47,608 46,453 41,066 35,902 35,250 42,868 45,916 49,132 57,107 53,941 (i) Concessional 10,318 10,080 11,892 11,988 12,973 24,501 27,681 24,362 17,389 24,776 25,069 - 67 -a) Public Sector 7,763 7,546 9,052 6,758 7,600 18,751 19,265 19,833 23,049 20,581 12,182 b) Financial Institutions 2,555 2,534 2,840 5,230 5,373 5,207 6,025 5,804 4,669 4,631 3,781 c) Private Sector 0 0 0 0 0 0 0 0 0 0 0 (ii) Non-concessional 41,577 37,528 34,560 29,077 22,930 24,631 29,426 29,579 17,861 18,092 20,847 a) Public Sector 13,374 11,561 10,938 9,478 8,531 3,618 5,156 6,523 7,098 6,132 7,048 b) Financial Institutions 4,361 3,323 3,029 3,169 2,530 2,296 2,007 5,165 6,057 8,895 9,423 c) Private Sector 23,842 22,644 20,594 16,430 11,869 12,467 10,527 12,051 13,434 14,024 8,516 III. IMF a 36,910 34,350 37,177 35,129 37,716 40,931 41,442 1,73,415 1,83,021 1,82,587 38,202 IV. EXPORT CREDIT 93,275 78,915 70,001 62,426 61,660 25,353 24,027 24,331 54,899 52,617 45,969 a) Buyers' credit 80,069 66,006 54,963 46,790 43,683 30,952 23,539 19,378 17,734 16,410 35,692 b) Suppliers' credit 4,779 5,217 6,088 6,094 6,764 7,101 6,856 5,975 6,293 7,921 6,910 c) Export credit component of bilateral 8,427 7,692 8,950 9,543 11,213 12,297 14,565 15,574 0 0 0 credit V. COMMERCIAL BORROWINGS 8,97,744 11,28,501 11,97,176 11,15,514 13,12,756 14,28,897 16,54,195 15,95,071 17,12,042 18,16,835 20,87,495 a) Commercial bank loans b 5,82,644 6,35,246 6,47,311 5,67,286 5,50,820 6,59,541 8,23,472 8,06,167 7,93,757 8,74,073 9,68,492 b) Securitized borrowings c 3,13,416 4,90,895 5,47,465 5,45,906 7,59,701 7,67,283 8,28,604 7,86,907 9,16,492 9,41,018 11,17,648 c) Loans/securitized borrowings etc., with 1,684 2,360 2,400 2,323 2,234 2,074 2,120 1,998 1,793 1,743 1,355 multilateral/bilateral guarantee + IFC (W) VI. NRI DEPOSITS d (Above one year 6,24,101 7,20,997 8,41,956 7,57,751 8,20,737 9,02,152 9,77,309 10,27,382 10,59,041 11,41,818 12,66,272 maturity) VII. RUPEE DEBTe 8,826 9,426 8,479 7,962 7,886 8,007 7,704 7,162 7,279 6,687 7,100 a) Defence 8,179 8,807 7,887 7,398 7,350 7,498 7,223 6,708 6,853 6,289 6,730 b) Civilian 647 619 592 564 536 509 481 453 426 398 370 VIII. TOTAL LONG-TERM DEBT (I TO VII) 21,31,229 24,36,397 26,63,657 24,83,708 27,77,385 30,04,948 33,91,944 34,49,358 37,77,962 40,75,540 45,12,525 IX. SHORT-TERM DEBT 5,50,985 5,35,145 5,53,906 5,71,387 6,64,575 7,49,924 8,05,708 7,42,995 9,22,484 10,55,491 10,21,537 a) Trade-Related Credits 4,91,271 5,10,938 5,30,806 5,60,781 6,52,969 7,08,379 7,64,291 7,14,863 8,89,665 10,18,650 9,83,827 1) Above 6 Months 3,30,500 3,34,267 3,39,674 3,64,104 4,31,225 3,62,982 3,89,010 3,44,758 3,64,620 4,99,899 4,80,836 2) Up to 6 Months 1,60,771 1,76,671 1,91,132 1,96,677 2,21,744 3,45,397 3,75,281 3,70,106 5,25,045 5,18,751 5,02,991 b) FII Investment in Govt. Treasury Bills 33,686 7,307 132 260 580 12,003 12,990 12,467 15,927 16,426 11,674 and other instruments c) Investment in Treasury Bills by foreign 572 714 1,576 1,577 1,791 1,820 1,822 1,955 1,940 1,879 1,785 central banks and other international institutions etc. -- 68 --d) External Debt Liabilities 25,456 16,186 21,392 8,768 9,235 27,721 26,605 13,710 14,953 18,535 24,251 1) Central Bank 892 939 1,197 1,575 1,782 1,529 1,357 1,282 574 1,102 1,747 2) Commercial banks 24,564 15,247 20,195 7,194 7,453 26,193 25,248 12,429 14,379 17,433 22,504 X. GRAND TOTAL (VIII+ IX) 26,82,214 29,71,542 32,17,563 30,55,095 34,41,960 37,54,872 41,97,652 41,92,353 47,00,446 51,31,031 55,34,062 Source: Ministry of Finance (Department of Economic Affairs), Ministry of Defence, Reserve Bank of India, Securities & Exchange Board of India, Clearing Corporation of India PR: Partially Revised; P: Provisional. IFC(W): International Finance Corporation, Washington D.C. FII: Foreign Institutional Investors a: Relates to SDR allocations from March 2004 onwards. b: Includes Financial Lease since 1996. c: Also includes India Development Bonds (IDBs), Resurgent India Bonds (RIBs), India Millennium Deposits (IMDs), Foreign Currency Convertible Bonds (FCCBs) and net investment by 100% FII debt funds and securitized borrowings of commercial banks. FCCB debt has been adjusted since end-March, 1998 after netting out conversion into equity and redemp d: Figures include accrued interest. e: Rupee denominated debt owed to Russia and payable through exports. Note: NRO Deposits are included under NRI Deposits from the quarter ended June 2005. Supplier’s Credits upto 180 days and FII investment in short-term debt instruments are included under short-term debt from the quarter ended March 2005. Vostro balances / Nostro overdrafts of commercial banks, balances of foreign central banks/international institutions with RBI and investment in T-bills/securities by foreign central banks/ international institutions have been included in external debt from the quarter ended March 2007. -- 69 --Annexure IV: India's External Debt Outstanding - US Dollar (US$ million) Sl. No. Components of External Debt 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PR 2024 P (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) I. MULTILATERAL 53,418 52,391 54,000 54,499 57,249 57,455 59,919 69,750 72,864 75,310 78,087 A. Government Borrowing 44,598 43,015 44,170 44,356 46,907 46,471 48,354 57,689 60,596 63,451 66,683 (i) Concessional 27,173 24,679 25,005 24,117 25,256 23,272 22,211 22,734 21,200 19,189 17,050 a) IDA 26,770 24,294 24,595 23,705 24,789 22,803 21,704 22,206 20,684 18,694 16,550 b) Others 403 385 411 412 467 469 507 527 516 495 500 (ii) Non-concessional 17,425 18,336 19,165 20,238 21,651 23,199 26,143 34,956 39,396 44,262 49,632 a) IBRD 8,876 9,117 9,244 9,335 9,496 9,756 11,058 13,650 14,944 16,507 18,799 b) Others 8,549 9,219 9,921 10,903 12,155 13,443 15,085 21,306 24,452 27,755 30,833 B. Non-Government Borrowing 8,820 9,376 9,829 10,144 10,342 10,984 11,566 12,061 12,268 11,859 11,404 (i) Concessional 0 0 0 0 0 0 0 0 0 0 0 (ii) Non-concessional 8,820 9,376 9,829 10,144 10,342 10,984 11,566 12,061 12,268 11,859 11,404 a) Public Sector 4,669 5,010 5,319 4,944 5,192 5,661 5,465 6,632 6,465 6,082 5,907 i) IBRD 2,394 2,502 2,554 2,558 2,608 2,706 2,877 3,013 3,051 2,929 2,972 ii) Others 2,275 2,508 2,765 2,386 2,583 2,955 2,587 3,619 3,414 3,153 2,935 b) Financial Institutions 3,139 3,492 3,791 4,595 4,652 5,091 5,612 4,118 4,354 4,490 4,300 i) IBRD 635 592 899 1,120 1,142 1,226 1,150 1,085 1,121 1,058 1,002 ii) Others 2,504 2,900 2,892 3,475 3,509 3,865 4,462 3,033 3,233 3,432 3,298 c) Private Sector 1,012 874 719 605 498 233 490 1,312 1,449 1,287 1,197 i) IBRD 0 0 0 0 0 0 0 0 0 0 0 ii) Others 1,012 874 719 605 498 233 490 1,312 1,449 1,287 1,197 II. BILATERAL 24,727 21,726 22,448 23,214 25,382 25,622 28,080 30,926 32,524 34,515 35,211 A.Government borrowing 16,099 14,121 15,457 16,887 19,857 20,514 22,370 24,640 26,051 27,570 28,742 (i) Concessional 16,099 14,121 15,457 16,887 19,857 20,514 24,640 26,051 27,570 22,370 28,742 (ii) Non-concessional 0 0 0 0 0 0 0 0 0 0 0 B.Non-Government borrowing 8,628 7,605 6,991 6,327 5,525 5,108 5,710 6,285 6,473 6,945 6,469 (i) Concessional 1,714 1,610 1,786 1,845 1,998 2,523 3,309 3,449 3,224 3,366 2,922 -70-a) Public Sector 1,290 1,205 1,359 1,040 1,170 1,767 2,650 2,609 2,803 2,504 2,468 b) Financial Institutions 424 405 427 805 827 755 798 614 563 805 453 c) Private Sector 0 0 0 0 0 0 0 0 0 0 0 (ii) Non-concessional 6,914 5,995 5,205 4,482 3,527 2,585 2,400 2,836 3,249 3,579 3,548 a) Public Sector 2,223 1,846 1,646 1,459 1,313 1,021 701 860 863 480 735 b) Financial Institutions 724 531 455 488 389 333 703 799 1,082 267 1,130 c) Private Sector 3,967 3,618 3,105 2,534 1,825 1,231 1,432 1,590 1,634 1,654 1,682 III. IMFa 6,149 5,488 5,605 5,410 5,784 5,523 5,430 5,638 22,876 22,261 21,910 IV. TRADE CREDIT 15,518 12,608 10,548 9,625 9,483 7,943 6,993 6,278 3,344 2,922 2,918 a) Buyers' credit 13,323 10,547 8,286 7,216 6,716 5,160 3,202 2,556 2,157 4,106 1,968 b) Suppliers' credit 795 833 918 940 1,040 999 933 788 765 942 950 c) Export credit component of bilateral 1,400 1,228 1,344 1,468 1,727 1,784 1,945 2,143 0 0 0 credit V. COMMERCIAL BORROWINGS 1,49,375 1,80,295 1,80,480 1,72,045 2,01,826 2,06,574 2,19,534 2,17,121 2,25,797 2,20,981 2,50,378 a) Commercial bank loans b 96,946 1,01,492 97,585 87,492 84,684 95,349 1,09,234 1,09,676 1,04,708 1,06,313 1,16,163 b) Securitized borrowings c 52,149 78,426 82,533 84,195 1,16,798 1,10,925 1,10,019 1,07,174 1,20,853 1,14,456 1,34,052 c) Loans/securitized borrowings etc., with 280 377 362 358 344 300 281 272 237 212 163 multilateral/bilateral guarantee + IFC(W) VI. NRI DEPOSITSd 1,03,845 1,15,163 1,26,929 1,16,867 1,26,182 1,30,423 1,30,581 1,41,895 1,39,022 1,38,879 1,51,879 (Above one year maturity) VII. RUPEE DEBTe 1,468 1,506 1,278 1,228 1,213 1,158 1,022 975 960 813 852 a) Defence 1,361 1,407 1,189 1,141 1,120 1,084 958 913 904 765 807 b) Civilian 107 99 89 87 83 74 64 62 56 48 44 VIII. TOTAL LONG TERM DEBT (I TO 3,54,500 3,89,177 4,01,288 3,82,888 4,27,117 4,34,697 4,51,559 4,72,582 4,97,387 4,95,681 5,41,235 VII) IX. SHORT-TERM DEBT 91,678 85,498 83,504 88,124 1,02,173 1,08,415 1,06,878 1,01,081 1,21,688 1,28,379 1,22,525 a) Trade-Related Credits 81,743 81,631 80,022 86,489 1,00,389 1,02,409 1,01,384 1,18,002 97,254 1,17,359 1,23,898 1) Above 6 Months 54,992 53,405 51,208 56,155 66,297 52,476 57,672 51,603 46,903 48,098 60,802 -71-2) Upto 6 Months 26,751 28,226 28,814 30,333 34,091 49,934 60,330 49,781 50,351 69,261 63,095 b) FII Investment in Govt. Treasury Bills 5,605 1,167 20 40 89 1,735 1,723 1,696 2,101 1,998 1,400 and other instruments c) Investment in Treasury Bills by foreign 95 114 238 243 275 263 242 266 256 229 214 central banks and other international institutions etc. d) External Debt Liabilities of: 4,235 2,586 3,225 1,352 1,420 4,008 3,529 2,909 1,865 1,972 2,254 1) Central Bank 148 150 180 243 274 221 210 180 174 76 134 2) Commercial banks 4,087 2,436 3,045 1,110 1,146 3,787 2,699 3,349 1,691 1,897 2,120 X. GRAND TOTAL (VIII+IX) 4,46,178 4,74,675 4,84,791 4,71,012 5,29,290 5,43,112 5,58,437 5,73,663 6,19,076 6,24,060 6,63,760 Memo Items : Concessional Debtf 46,454 41,916 43,526 44,077 48,324 47,466 48,913 51,798 51,435 50,938 49,565 Concessional Debt to total external debt 10.4 8.8 9.0 9.4 9.1 8.7 8.8 9.0 8.3 8.2 7.5 (per cent) Short-term debt 91,678 85,498 83,504 88,124 1,02,173 1,08,415 1,06,878 1,01,081 1,21,688 1,28,379 1,22,525 Short-term debt to total external debt (per 20.5 18.0 17.2 18.7 19.3 20.0 19.1 17.6 19.7 20.6 18.5 cent) Source: Ministry of Finance (Department of Economic Affairs), Ministry of Defence, Reserve Bank of India, Securities & Exchange Board of India, Clearing Corporation of India. PR: Partially Revised; P: Provisional. IFC(W): International Finance Corporation, Washington D.C. FII: Foreign Institutional Investors a: Relates to SDR allocations from March 2004 onwards. b: Includes Financial Lease since 1996. c: Also includes India Development Bonds (IDBs), Resurgent India Bonds (RIBs), India Millennium Deposits (IMDs), Foreign Currency Convertible Bonds (FCCBs) and net investment by 100% FII debt funds and securitized borrowings of commercial banks. FCCB debt has been adjusted since end-March, 1998 after netting out conversion into equity and redemptions. d: Figures include accrued interest. e: Rupee denominated debt owed to Russia and payable through exports. f: The definition of concessional debt here includes 'concessional' categoreis under multilateral and bilateral debt and rupee debt under item VII. Note: NRO Deposits are included under NRI Deposits from the quarter ended June 2005. Supplier’s Credits upto 180 days and FII investment in short-term debt instruments are included under short-term debt from the quarter ended March 2005. Vostro balances / Nostro overdrafts of commercial banks, balances of foreign central banks/international institutions with RBI and investment in T-bills/securities by foreign central banks/ international institutions have been included in external debt from the quarter ended March 2007. -72-Annexure V: India's External Debt Outstanding (Quarterly) - Rupees (₹ Crore) Sl.No. Components of External Debt Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 PR Jun 2023 PR Sep 2023 PR Dec 2023 PR Mar 2024 P (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) I. MULTILATERAL 5,53,703 5,76,169 5,92,570 6,15,511 6,19,321 6,16,407 6,25,305 6,44,814 6,51,131 A. Government Borrowing 4,60,547 4,81,425 4,94,900 5,15,861 5,21,803 5,21,383 5,29,351 5,50,522 5,56,039 (i) Concessional 1,61,129 1,59,967 1,57,218 1,60,291 1,57,806 1,51,025 1,48,382 1,46,714 1,42,175 a) IDA 1,57,206 1,56,101 1,53,369 1,56,250 1,53,736 1,46,952 1,44,299 1,42,530 1,38,007 b) Others 3,923 3,866 3,850 4,040 4,070 4,073 4,083 4,185 4,168 (ii) Non-concessional 2,99,418 3,21,458 3,37,682 3,55,570 3,63,996 3,70,358 3,80,969 4,03,808 4,13,865 a) IBRD 1,13,578 1,19,760 1,24,612 1,29,636 1,35,746 1,37,688 1,41,135 1,53,646 1,56,760 b) Others 1,85,840 2,01,698 2,13,069 2,25,934 2,28,251 2,32,671 2,39,834 2,50,162 2,57,104 B. Non-Government Borrowing 93,155 94,744 97,670 99,650 97,518 95,024 95,954 94,292 95,092 (i) Concessional 0 0 0 0 0 0 0 0 0 (ii) Non-concessional 93,155 94,744 97,670 99,650 97,518 95,024 95,954 94,292 95,092 a) Public Sector 49,113 50,371 51,555 51,231 50,016 49,370 49,535 49,368 49,254 i) IBRD 23,190 24,100 24,945 24,593 24,088 24,001 24,308 24,533 24,779 ii) Others 25,923 26,271 26,610 26,638 25,928 25,369 25,227 24,835 24,475 b) Financial Institutions 33,059 33,151 35,130 37,549 36,921 35,689 35,783 34,672 35,855 i) IBRD 8,518 8,577 8,926 8,777 8,702 8,419 8,550 8,356 8,359 ii) Others 24,541 24,575 26,204 28,772 28,219 27,270 27,233 26,316 27,496 c) Private Sector 10,984 11,222 10,985 10,870 10,582 9,965 10,636 10,252 9,983 i) IBRD 0 0 0 0 0 0 0 0 0 ii) Others 10,984 11,222 10,985 10,870 10,582 9,965 10,636 10,252 9,983 II. BILATERAL 2,47,130 2,47,358 2,47,926 2,73,402 2,83,832 2,74,133 2,76,674 2,94,608 2,93,609 A.Government borrowing 1,97,997 1,96,505 1,95,589 2,17,978 2,26,725 2,19,106 2,21,292 2,39,584 2,39,668 (i) Concessional 1,97,997 1,96,505 1,95,589 2,17,978 2,26,725 2,19,106 2,21,292 2,39,584 2,39,668 (ii) Non-concessional 0 0 0 0 0 0 0 0 0 B.Non-Government borrowing 49,132 50,853 52,337 55,423 57,107 55,027 55,382 55,024 53,941 (i) Concessional 24,501 23,515 23,574 26,334 27,681 25,526 25,173 25,671 24,362 a) Public Sector 19,833 19,280 19,545 22,233 23,049 21,416 21,242 21,824 20,581 -73-b) Financial Institutions 4,669 4,235 4,030 4,102 4,631 4,110 3,931 3,847 3,781 c) Private Sector 0 0 0 0 0 0 0 0 0 (ii) Non-concessional 24,631 27,338 28,763 29,089 29,426 29,502 30,209 29,353 29,579 a) Public Sector 6,523 7,053 6,936 7,350 7,098 6,865 6,572 6,638 6,132 b) Financial Institutions 6,057 8,291 8,834 8,901 8,895 8,399 9,045 8,405 9,423 c) Private Sector 12,051 11,993 12,994 12,838 13,434 14,237 14,593 14,310 14,024 III. IMFa 1,73,415 1,73,451 1,72,721 1,82,498 1,83,021 1,80,575 1,80,570 1,84,493 1,82,587 IV. TRADE CREDIT 25,353 25,401 24,497 24,625 24,027 23,593 23,257 23,015 24,331 a) Buyers' credit 19,378 19,443 18,083 18,237 17,734 17,298 16,978 16,882 16,410 b) Suppliers' credit 5,975 5,959 6,414 6,388 6,293 6,294 6,279 6,133 7,921 c) Export credit component of bilateral 0 0 0 0 0 0 0 0 0 credit V. COMMERCIAL BORROWINGS 17,12,042 17,36,817 17,72,388 17,91,835 18,16,835 18,85,576 19,20,571 19,65,496 20,87,495 a) Commercial bank loansb 7,93,757 8,00,537 8,32,949 8,56,409 8,74,073 9,31,874 9,35,693 9,41,296 9,68,492 b) Securitized borrowingsc 9,16,492 9,34,551 9,37,778 9,33,633 9,41,018 9,52,222 9,83,461 10,22,718 11,17,648 c) Loans/securitized borrowings etc., with 1,793 1,729 1,661 1,793 1,743 1,480 1,416 1,482 1,355 multilateral/bilateral guarantee + IFC(W) VI. 10,59,041 10,65,115 10,90,138 11,13,350 11,41,818 11,59,636 11,88,309 12,21,059 12,66,272 NRI DEPOSITS (Above one year maturity)d a) NR(E) RA 7,67,881 7,75,334 7,81,330 7,82,069 7,87,776 7,91,808 8,01,162 8,11,977 8,22,264 b) FCNR (B) 1,28,879 1,22,828 1,30,552 1,45,360 1,59,199 1,68,062 1,76,779 1,89,633 2,14,549 c) NRO Deposits 1,62,281 1,66,954 1,78,256 1,85,921 1,94,842 1,99,766 2,10,367 2,19,449 2,29,459 VII. RUPEE DEBTe 7,279 7,504 7,235 7,246 6,687 6,404 6,396 6,392 7,100 a) Defence 6,853 7,104 6,837 6,848 6,289 6,032 6,025 6,022 6,730 b) Civilian 426 400 398 398 398 372 370 370 370 VIII. TOTAL LONG TERM DEBT (I TO 37,77,962 38,31,816 39,07,476 40,08,466 40,75,540 41,46,324 42,21,080 43,39,878 45,12,525 VII) IX. SHORT-TERM DEBT 9,22,484 9,95,078 10,35,253 10,58,594 10,55,491 10,13,768 10,74,108 10,32,419 10,21,537 a) Trade - Related Credits 8,89,665 9,66,433 10,00,916 10,28,083 10,18,650 9,75,562 10,32,738 9,97,154 9,83,827 1) 6 Months and above/upto 1 year 3,64,620 4,26,922 4,58,251 4,84,283 4,99,899 4,78,523 5,12,683 4,86,544 4,80,836 -74-2) Up to 6 months 5,25,045 5,39,511 5,42,665 5,43,800 5,18,751 4,97,040 5,20,054 5,10,610 5,02,991 b) FII Investment in Govt. Treasury Bills 15,927 15,136 16,559 15,000 16,426 13,443 13,270 12,839 11,674 and other instruments c) Investment in Treasury Bills by foreign 1,940 1,920 1,900 1,875 1,879 2,415 2,378 2,339 1,785 central banks and international institutions etc. d) External Debt Liabilities of: 14,953 11,589 15,878 13,637 18,535 22,348 25,721 20,086 24,251 1) Central Bank 574 961 987 967 1,102 1,622 1,682 1,512 1,747 2) Commercial banks 14,379 10,629 14,891 12,670 17,433 20,725 24,039 18,574 22,504 X. GRAND TOTAL ( VIII+IX ) 47,00,446 48,26,894 49,42,729 50,67,060 51,31,031 51,60,092 52,95,188 53,72,297 55,34,062 Source: Ministry of Finance (Department of Economic Affairs), Ministry of Defence, Reserve Bank of India, Securities & Exchange Board of India PR: Partially Revised; P: Provisional. IFC(W): International Finance Corporation, Washington D.C. FII: Foreign Institutional Investors a: Relates to SDR allocations from March 2004 onwards. b: Includes Financial Lease since 1996. c: Also includes India Development Bonds (IDBs), Resurgent India Bonds (RIBs), India Millennium Deposits (IMDs), Foreign Currency Convertible Bonds (FCCBs) and net investment by 100% FII debt funds and securitized borrowings of commercial banks, FCCB debt has been adjusted since end-March, 1998 after netting out conversion into equity and redemptions. d: Figures include accrued interest. e: Rupee denominated debt owed to Russia and payable through exports. Note: NRO Deposits are included under NRI Deposits from the quarter ended June 2005. Supplier’s Credits upto 180 days and FII investment in short-term debt instruments are included under short-term debt from the quarter ended March 2005. Vostro balances / Nostro overdrafts of commercial banks, balances of foreign central banks/international institutions with RBI and investment in T-bills/ securities by foreign central banks/ international institutions have been included in external debt from the quarter ended March 2007. -75-Annexure VI: India's External Debt Outstanding (Quarterly) - US Dollar (US$ million) Mar 2023 S.No. Components of External Debt Mar 2022 Jun 2022 Sep 2022 Dec 2022 Jun 2023 PR Sep 2023 PR Dec 2023 PR Mar 2024 P PR (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) I. MULTILATERAL 72,864 73,175 72,345 74,213 75,310 75,176 75,110 77,371 78,087 A. Government Borrowing 60,596 61,152 60,405 62,191 63,451 63,589 63,576 66,047 66,683 (i) Concessional 21,200 20,319 19,189 19,324 19,189 18,419 17,821 17,602 17,050 a) IDA 20,684 19,828 18,719 18,837 18,694 17,923 17,330 17,100 16,550 b) Others 516 491 470 487 495 497 490 502 500 (ii) Non-concessional 39,396 40,832 41,216 42,867 44,262 45,170 45,755 48,446 49,632 a) IBRD 14,944 15,212 15,210 15,629 16,507 16,793 16,951 18,433 18,799 b) Others 24,452 25,620 26,006 27,238 27,755 28,377 28,804 30,013 30,833 B. Non-Government Borrowing 12,268 12,023 11,940 12,022 11,859 11,587 11,534 11,324 11,404 (i) Concessional 0 0 0 0 0 0 0 0 0 (ii) Non-concessional 12,268 12,023 11,940 12,022 11,859 11,587 11,534 11,324 11,404 a) Public Sector 6,465 6,395 6,298 6,178 6,082 6,021 5,952 5,926 5,907 i) IBRD 3,051 3,061 3,045 2,965 2,929 2,927 2,919 2,943 2,972 ii) Others 3,414 3,334 3,253 3,214 3,153 3,093 3,032 2,982 2,935 b) Financial Institutions 4,354 4,206 4,296 4,531 4,490 4,352 4,302 4,165 4,300 i) IBRD 1,121 1,089 1,089 1,058 1,058 1,027 1,027 1,002 1,002 ii) Others 3,233 3,117 3,206 3,473 3,432 3,325 3,275 3,162 3,298 c) Private Sector 1,449 1,422 1,347 1,313 1,287 1,215 1,281 1,233 1,197 i) IBRD 0 0 0 0 0 0 0 0 0 ii) Others 1,449 1,422 1,347 1,313 1,287 1,215 1,281 1,233 1,197 II. BILATERAL 32,524 31,410 30,277 32,967 34,515 33,432 33,238 35,355 35,211 A.Government borrowing 26,051 24,960 23,873 26,279 27,570 26,723 26,577 28,743 28,742 (i) Concessional 26,051 24,960 23,873 26,279 27,570 26,723 26,577 28,743 28,742 (ii) Non-concessional 0 0 0 0 0 0 0 0 0 B.Non-Government borrowing 6,473 6,450 6,404 6,689 6,945 6,709 6,660 6,611 6,469 (i) Concessional 3,224 2,987 2,877 3,175 3,366 3,113 3,023 3,080 2,922 -76-a) Public Sector 2,609 2,449 2,386 2,680 2,803 2,612 2,551 2,618 2,468 b) Financial Institutions 614 538 492 494 563 501 472 462 453 c) Private Sector 0 0 0 0 0 0 0 0 0 (ii) Non-concessional 3,249 3,463 3,527 3,514 3,579 3,596 3,637 3,532 3,548 a) Public Sector 860 893 850 888 863 837 791 799 735 b) Financial Institutions 799 1,050 1,083 1,075 1,082 1,024 1,089 1,011 1,130 c) Private Sector 1,590 1,519 1,593 1,551 1,634 1,735 1,757 1,722 1,682 III. IMFa 22,876 21,972 21,179 22,023 22,261 22,010 21,760 22,202 21,910 IV. TRADE CREDIT 3,344 3,218 3,004 2,975 2,922 2,876 2,800 2,769 2,918 a) Buyers' credit 2,556 2,463 2,217 2,203 2,157 2,108 2,044 2,031 1,968 b) Suppliers' credit 788 755 786 772 765 767 756 738 950 0 0 0 0 0 0 0 0 0 c) Export credit component of bilateral credit V. COMMERCIAL BORROWINGS 2,25,797 2,20,083 2,17,332 2,16,441 2,20,981 2,29,828 2,31,232 2,36,475 2,50,378 a) Commercial bank loans b 1,04,708 1,01,408 1,02,137 1,03,448 1,06,313 1,13,584 1,12,655 1,13,250 1,16,163 b) Securitized borrowings c 1,20,853 1,18,456 1,14,991 1,12,776 1,14,456 1,16,064 1,18,407 1,23,046 1,34,052 c) Loans/securitized borrowings etc., with 237 219 204 217 212 180 171 178 163 multilateral/bilateral guarantee + IFC(W) VI. 1,39,022 1,35,977 1,33,674 1,34,485 1,38,879 1,41,345 1,43,070 1,46,909 1,51,879 NRI DEPOSITS (Above one year maturity)d a) NR(E) RA 1,00,801 98,982 95,807 94,469 95,817 96,512 96,458 97,692 98,624 b) FCNR (B) 16,918 15,681 16,008 17,558 19,363 20,485 21,284 22,815 25,733 c) NRO Deposits 21,303 21,314 21,858 22,458 23,699 24,349 25,328 26,403 27,522 VII. RUPEE DEBTe 960 951 887 875 813 781 770 769 852 a) Defence 904 900 838 827 765 735 725 725 807 b) Civilian 56 51 49 48 48 45 44 44 44 VIII. TOTAL LONG TERM DEBT (I TO VII) 4,97,387 4,86,785 4,78,698 4,83,979 4,95,681 5,05,448 5,07,981 5,21,850 5,41,235 IX. SHORT-TERM DEBT 1,21,688 1,26,052 1,26,944 1,27,871 1,28,379 1,23,566 1,29,320 1,24,214 1,22,525 -77-a) Trade - Related Credits 1,17,359 1,22,423 1,22,733 1,24,185 1,23,898 1,18,909 1,24,339 1,19,971 1,18,002 1) 6 Months and above/upto 1 year 48,098 54,080 56,191 58,498 60,802 58,326 61,726 58,538 57,672 2) Up to 6 months 69,261 68,343 66,542 65,687 63,095 60,583 62,613 61,433 60,330 b) FII Investment in Govt. Treasury Bills and 2,101 1,917 2,030 1,812 1,998 1,639 1,598 1,545 1,400 other instruments 256 243 233 226 229 294 286 281 214 c) Investment in Treasury Bills by foreign central banks and international institutions etc. d) External Debt Liabilities of: 1,972 1,468 1,947 1,647 2,254 2,724 3,097 2,417 2,909 1) Central Bank 76 122 121 117 134 198 203 182 210 2) Commercial banks 1,897 1,346 1,826 1,530 2,120 2,526 2,894 2,235 2,699 X. GRAND TOTAL (VIII+IX) 6,19,076 6,12,836 6,05,641 6,11,850 6,24,060 6,29,014 6,37,301 6,46,064 6,63,760 Memo Items : Concessional Debtf 51,435 49,217 46,826 49,653 50,938 49,036 48,192 50,194 49,565 Concessional Debt to total external debt (per 8.3 8.0 7.7 8.1 8.2 7.8 7.6 7.8 7.5 cent) Short-term debt 1,21,688 1,26,052 1,26,944 1,27,871 1,28,379 1,23,566 1,29,320 1,24,214 1,22,525 Short-term debt to total external debt (per 19.7 20.6 21.0 20.9 20.6 19.6 20.3 19.2 18.5 cent) Source: Ministry of Finance (Department of Economic Affairs), Ministry of Defence, Reserve Bank of India, Securities & Exchange Board of India PR: Partially Revised; P: Provisional. IFC(W): International Finance Corporation, Washington D.C. FII: Foreign Institutional Investors a: Relates to SDR allocations from March 2004 onwards. b: Includes Financial Lease since 1996. c: Also includes India Development Bonds (IDBs), Resurgent India Bonds (RIBs), India Millennium Deposits (IMDs), Foreign Currency Convertible Bonds (FCCBs) and net investment by 100% FII debt funds and securitized borrowings of commercial banks. FCCB debt has been adjusted since end-March, 1998 after netting out conversion into equity and redemptions. d: Figures include accrued interest. e: Rupee denominated debt owed to Russia and payable through exports. f: The definition of concessional debt here includes 'concessional' categoreis under multilateral and bilateral debt and rupee debt under item VII. Note: NRO Deposits are included under NRI Deposits from the quarter ended June 2005. Supplier’s Credits upto 180 days and FII investment in short-term debt instruments are included under short-term debt from the quarter ended March 2005. Vostro balances / Nostro overdrafts of commercial banks, balances of foreign central banks/international institutions with RBI and investment in T-bills/securities by foreign central banks/ international institutions have been included in external debt from the quarter ended March 2007. -78-Annexure VII: External Debt by Borrower Classification (US$ Million) S.No. Components 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PR 2024 P (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) I Government Debt (A+B) 83,695 89,717 93,567 95,779 1,11,937 1,03,823 1,00,876 1,11,635 1,30,776 1,33,324 1,48,689 A Long-term (1+2): 79,914 89,603 93,329 95,680 1,11,662 1,03,560 1,00,634 1,32,677 1,48,464 1,11,369 1,29,882 1 Govt. Account 62,204 58,462 61,060 62,800 68,574 68,842 72,734 91,069 95,469 84,535 86,703 2 Other Govt. Debt (Long term) 17,710 31,141 32,269 32,880 43,088 34,717 27,901 41,608 52,995 26,834 43,178 B Other Govt Debt (Short-term) 3,781 114 238 99 275 263 242 266 894 646 225 II Non-Government Debt (C+D) 3,62,483 3,84,958 3,91,224 3,75,233 4,17,354 4,39,290 4,61,430 4,62,028 4,88,296 4,90,736 5,15,071 C Long-term (1+2): 2,74,586 2,99,574 3,07,957 2,87,352 3,15,456 3,31,137 3,54,794 3,63,004 3,92,771 3,61,213 3,67,502 1 Financial Sector* 1,35,175 1,44,619 1,59,629 1,47,174 1,69,008 1,90,394 2,00,570 2,15,898 2,32,711 2,13,349 2,08,991 2 Non-Financial Sector, of which 1,39,411 1,54,955 1,48,328 1,40,178 1,46,448 1,40,743 1,54,224 1,47,105 1,60,060 1,47,864 1,58,511 33,226 33,711 33,385 28,578 29,493 34,147 32,364 29,418 26,528 a. Public Sector** 32,645 32,068 1,06,185 1,21,244 1,14,943 1,11,600 1,16,954 1,06,596 1,21,860 1,17,688 1,33,532 b. Private Sector*** 1,15,218 1,26,443 D Short-term 87,897 85,384 83,267 87,881 1,01,898 1,08,152 1,06,636 1,27,732 1,22,300 1,00,815 1,20,794 III Total External Debt (I+II) 4,46,178 4,74,675 4,84,791 4,71,012 5,29,291 5,43,112 5,62,306 5,73,663 6,19,072 6,24,060 6,63,760 IV 18.8 18.9 19.3 20.3 21.1 19.1 17.9 19.5 21.1 21.4 22.4 Share of Government debt in total debt (per cent) V 81.2 81.1 80.7 79.7 78.9 80.9 82.1 80.5 78.9 78.6 77.6 Share of Non-Government debt in total debt (per cent) Memo items: Source: Based on data from RBI, SEBI, CCIL, CAAA and Ministry of Defence. PR: Partially Revised; QE: Quick Estimates. *Financial sector represents borrowings by banks and financial institutions and also include long-term NRI Deposits. **Public sector debt represents borrowings of non- financial public sector enterprises. ***Private sector debt represents borrowings of non- financial private sector enterprises. -79-Annexure VIII: Instrument-wise Classification of External Debt Outstanding at End-March 2024 (US$ million) INSTRUMENTS Sl. Borro Creditor Bonds & Loans Trade Deposits Total No. wer Notes Credits (1) (2) (3) (4) (5) (6) (7) (8) I Government: 30,412 96,142 0 21,910 1,48,464 1 Multilateral 66,683 66,683 2 Bilateral 28,742 28,742 3 IMF (SDR) 21,910 21,910 4 Export Credit 0 0 5 Commerciala 30,412 30,412 6 Rupee Debt 717 717 II Financial Sectorb: 26,067 54,766 0 1,51,879 2,32,711 Mult1il ateral 4,605 4,605 Bilat2e ral 1,772 1,772 Expo3r t Credit 0 0 Com4m ercial 26,067 48,389 74,455 NRI 5D eposits 1,51,879 1,51,879 III Non-Financial Public Sector 5,491 21,037 0 0 26,528 Mult1il ateral 5,602 5,602 Bilat2e ral 3,010 3,010 Expo3r t Credit 57 57 Com4m ercial 5,491 12,234 17,725 Rupe5e Dept 134 134 Non-Financial Private 53,382 79,200 950 0 1,33,532 IV Sector: Mult1il ateral 1,197 1,197 Bilat2e ral 1,688 1,688 Expo3r t Credit 1,912 950 2,862 Com4m ercial 53,382 74,403 1,27,785 Total Long Term External 1,15,351 2,51,144 950 1,73,789 5,41,235 V Debt: (I to IV) 1 Multilateral 0 78,087 0 0 78,087 2 Bilateral 0 35,211 0 0 35,211 3 IMF 0 0 0 21,910 21,910 4 Export Credit 0 1,968 950 0 2,918 5 Commercial 1,15,351 1,35,026 0 0 2,50,377 6 NRI Deposits 0 0 0 1,51,879 1,51,879 7 Rupee Debt 0 852 0 0 852 Total Short Term External 1,614 0 1,18,002 2,909 1,22,525 VI Debt: 1 Export Credit 1,18,002 1,18,002 2 Commercial 1,614 2,909 4,523 Memo Items: Borrower Category Government: 30,412 96,142 0 21,910 1,48,464 I -80-Financial Sector: 26,067 54,766 0 1,51,879 2,32,711 II Non-Financial Public Sector 5,491 21,037 0 0 26,528 III Non-Financial Private Sector 53,382 79,200 950 0 1,33,532 IV Total Long-Term Debt: 1,15,351 2,51,144 950 1,73,789 5,41,235 V Government: 225 225 VI Financial Sector: 1,390 2,909 4,298 VII Non-Financial Sector 1,18,002 1,18,002 VIII Total Short Term Debt 1,614 0 1,18,002 2,909 1,22,525 IX Note : The central bank, i.e., Reserve Bank of India has no external debt liability. a: Includes investment by FII in Central Government domestic debt securities and treasury bills. b: Financial sector includes financial development institutions, commercial banks and non-banking financial companies. -81-Annexure IX: Composition of External Debt: Currency-Wise (per cent) Sl. Currency 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PR 2024 P No. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 1 US Dollar 59.1 61.1 58.3 57.1 52.1 49.5 50.4 53.6 51.6 53.1 54.6 53.8 2 Indian Rupee 22.9 21.8 27.8 28.9 33.6 35.8 35.7 31.9 33.9 31.1 29.8 31.5 3 Japanese Yen 6.1 5.0 4.0 4.4 4.6 4.7 5.0 5.6 5.8 5.4 5.7 5.8 4 SDR 7.2 6.8 5.8 5.8 5.8 5.5 4.9 4.5 4.4 6.6 6.1 5.4 5 Euro 3.4 3.3 2.3 2.5 2.9 3.4 3.1 3.5 3.5 2.9 3.2 2.8 6 Others 0.6 0.9 0.9 0.5 0.4 0.5 0.4 0.4 0.5 0.4 0.3 0.4 7 Pound Sterling 0.7 1.1 0.9 0.8 0.6 0.6 0.5 0.4 0.4 0.5 0.3 0.3 Total (1 to 7) 100 100 100 100 100 100 100 100 100 100 100 100 Source: Based on data from RBI, CAAA, SEBI, CCIL and Ministry of Defence PR: Partially Revised; P: Provisional -82-Annexure X: Short-term debt by residual maturity Year Short-term Long-term Post facto Ratio of Ratio of Ratio of debt (Original debt Short-term residual residual residual Maturity) repayment debt Residual short-term short-term short-term obligations Maturity debt to total debt to debt to maturing in (2+3) debt (per Foreign Foreign one year cent) Currency Exchange Assets (per Reserves (per cent) cent) (1) (2) (3) (4) (5) (6) (7) 2008-09 49 44 93 38.8 36.1 37.0 2009-10 52 55 108 41.2 42.2 38.6 2010-11 65 64 129 40.6 47.0 42.3 2011-12 78 69 147 40.9 56.7 50.1 2012-13 97 76 172 42.1 66.4 59.0 2013-14 92 85 177 39.7 64.1 58.2 2014-15 85 97 183 38.5 57.6 53.5 2015-16 84 123 207 42.7 61.6 57.4 2016-17 88 108 196 41.6 56.6 52.9 2017-18 102 120 222 42.0 55.6 52.3 2018-19 108 127 236 43.4 61.1 57.0 2019-20 107 130 237 42.4 53.5 49.5 2020-21 101 152 253 44.1 47.4 43.8 2021-22 122 146 268 43.2 49.5 44.0 2022-23 128 146 274 43.9 53.8 47.4 2023-24 123 162 285 42.9 49.9 44.1 Source: RBI; -83-Annexure XI: India's External Debt Service Payments - Source-wise (US$ million) S. No. Source Component 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 PR 2023-24 P (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) 1 External Assistancea 4,771 5,071 5,672 6,380 6,918 6,956 6,548 7,672 9,925 Repayments 4,099 4,251 4,650 5,073 5,466 5,649 5,560 5,963 6,188 Interest 672 820 1,022 1,307 1,452 1,308 988 1,709 3,736 2 Commercial Borrowings 33,586 32,562 33,379 28,076 28,295 37,781 30,241 35,285 45,296 Repayments 26,716 25,642 25,386 18,531 17,625 28,285 20,819 23,549 29,678 Interest 6,871 6,920 7,993 9,545 10,670 9,496 9,422 11,736 15,618 3 Non-resident Deposits 5,901 5,612 5,495 6,434 6,508 4,609 4,718 6,214 7,731 Interest 5,901 5,612 5,495 6,434 6,508 4,609 4,718 6,214 7,731 4 Rupee Debt Service 73 99 75 31 69 64 71 68 72 Repayments 73 99 75 31 69 64 71 68 72 5 Total Debt Service 44,331 43,344 44,621 40,921 41,790 49,410 41,578 49,239 63,024 Repayments 30,888 29,992 30,111 23,635 23,160 33,998 26,450 29,580 35,939 Interest 13,443 13,351 14,510 17,286 18,629 15,413 15,128 19,659 27,086 Memo Items: Current Receipts 5,00,972 5,21,921 5,92,050 6,43,472 6,41,982 6,03,410 7,98,569 9,21,712 9,42,715 Debt Service Ratio (%) 8.8 8.3 7.5 6.4 6.5 8.2 5.2 5.3 6.7 Interest to Current Receipts Ratio (%) 2.7 2.6 2.5 2.7 2.9 2.6 1.9 2.1 2.9 Source ; RBI PR: Partially Revised; P: Provisional a: Inclusive of non-government account figures supplied by the Office of Controller of Aid Accounts & Audit, DEA, Ministry of Finance. -84-Annexure XII: India's External Debt Service Payments by Creditor Category (US$ million) 2022-23 Sl. No. Creditor Category 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2023-24 P PR (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 1 Multilateral : 3,005 3,395 3,956 4,823 4,975 5,677 5,688 5,309 5,199 6,620 9,038 Principal 2,548 2,914 3,384 4,062 4,016 4,354 4,375 4,224 4,379 5,007 5,401 Interest 457 481 572 761 960 1,322 1,314 1,085 820 1,613 3,636 2 Bilateral : 2,480 2,526 2,374 2,726 2,765 2,652 2,357 2,384 2,282 2,378 2,227 Principal 1,926 2,003 1,870 2,189 2,283 2,025 1,928 1,910 1,841 1,918 1,725 Interest 554 523 504 537 482 627 429 473 442 461 502 3 Export Credit : 3,855 4,129 3,018 2,292 1,908 1,956 1,310 1,684 658 536 563 Principal 3,276 3,565 2,517 1,842 1,482 1,414 1,038 1,543 580 416 326 Interest 579 564 501 450 426 542 272 141 78 120 238 4 Commercial Borrowings*: 18,136 26,299 29,009 27,792 29,403 24,171 26,204 36,503 29,220 33,423 43,393 Principal 13,335 21,189 23,044 21,800 22,256 15,810 16,097 27,397 20,150 22,171 28,414 Interest 4,801 5,110 5,965 5,992 7,147 8,361 10,106 9,105 9,069 11,251 14,978 5 NRI Deposits : 4,784 5,972 5,901 5,612 5,495 6,434 6,508 4,609 4718 6,214 7,731 Interesta 4,784 5,972 5,901 5,612 5,495 6,434 6,508 4,609 4718 6,214 7,731 6 Rupee Debt : 52 81 73 99 75 31 69 64 71 68 72 Principal 52 81 73 99 75 31 69 64 71 68 72 Total Debt Service: 32,312 42,402 44,331 43,344 44,621 40,921 42,136 50,552 42,149 49,239 63,024 Principal 21,137 29,752 30,888 29,992 30,111 23,635 23,507 35,139 27,021 29,580 35,939 Interest 11,175 12,650 13,443 13,352 14,510 17,286 18,629 15,413 15,128 19,659 27,086 Memo items: I Current Receipts 5,51,410 5,57,868 5,00,972 5,21,921 5,92,050 6,43,472 6,41,982 6,03,410 7,98,569 9,21,712 9,42,715 II Debt Service Ratio (%) 5.9 7.6 8.8 8.3 7.5 6.4 6.6 8.2 5.2 5.3 6.7 III Interest to Current Receipts Ratio (%) 2.0 2.3 2.7 2.6 2.5 2.7 2.9 2.6 1.9 2.1 2.9 Source: Ministry of Finance (Department of Economic Affairs), Ministry of Defence, Reserve Bank of India, Securities & Exchange Board of India . PR: Partially Revised, P: Provisional Note: 1) This corresponds to the creditor-wise debt outstanding ie. major heads of debt outstanding as per Annex 3 & 4 (Annual). 2) Figures for debt service and interest payments is calculated on cash payment basis except for Non-Resident Indian Deposits for which accrual method is used. The estimates may, therefore, differ from BOP data compilation methodology. a: Interest payments on NRI Deposits include both long term and short term external debt component of NRI Deposits. *: Commercial borrowings includes total of ECB through bank loans and secutirised instruments. -85-Annexure XIII: International Comparison of Top Low- and Middle-Income Debtor Countries, 2022 (US$ million) Present Short term Total ED to value of Foreign Present Present debt to ED stock, exports of debt to Total ED Short- exchange Short term Sl. value of value of Foreign Country total (US$ goods and exports of to GNI term debt reserves/ debt to total No. ED (US$ debt to Exchange millions) service goods and (%) (US$ Mn.) total debt debt (%) millions) GNI (%) Reserves (%) service (%) (%) (%) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) 1 China 23,88,742 4,08,967 61.2 10.5 13.4 2.3 12,65,190 138.4 53.0 38.3 2 India 6,16,863 1,86,653 77.6 23.5 18.4 5.6 1,29,168 91.2 20.9 23.0 3 Mexico 6,00,423 2,86,005 93.1 44.4 41.9 20.0 54,764 33.5 9.1 27.2 4 Brazil 5,78,599 1,64,448 137.6 39.1 31.1 8.8 67,772 56.1 11.7 20.9 5 Turkiye 4,58,699 1,33,882 130.3 38.0 51.0 14.9 1,48,206 27.0 32.3 119.8 6 Indonesia 3,96,235 2,15,457 122.7 66.7 30.9 16.8 50,374 34.6 12.7 36.7 7 Russian Federation 3,76,117 1,35,301 55.4 19.9 17.1 6.2 65,566 154.7 17.4 11.3 8 Argentina 2,47,681 77,880 232.5 73.1 40.0 12.6 49,090 18.1 19.8 109.5 9 Thailand 1,92,078 35,388 56.5 10.4 39.9 7.4 78,609 112.8 40.9 36.3 10 Colombia 1,84,118 97,915 229.8 122.2 55.8 29.7 19,119 30.8 10.4 33.7 11 South Africa 1,72,133 53,430 116.7 36.2 43.4 13.5 42,949 35.2 25.0 70.9 12 Egypt, Arab Rep. 1,63,104 97,500 210.5 125.8 35.4 21.2 30,246 19.7 18.5 94.1 13 Kazakhstan 1,61,721 22,643 166.9 23.4 80.9 11.3 16,650 21.7 10.3 47.5 14 Vietnam 1,46,627 37,009 37.9 9.6 37.7 9.5 38,154 59.4 26.0 43.8 15 Ukraine 1,39,331 56,555 198.8 80.7 82.5 33.5 15,429 20.5 11.1 54.1 16 Pakistan 1,26,942 74,852 320.2 188.8 34.4 20.3 8,768 7.8 6.9 88.3 17 Philippines 1,11,217 57,042 99.3 50.9 26.0 13.3 16,619 86.4 14.9 17.3 18 Nigeria 98,335 37,911 139.0 53.6 21.4 8.2 21,879 36.2 22.2 61.5 19 Bangladesh 97,012 53,630 160.2 88.6 20.3 11.2 18,530 34.8 19.1 54.9 20 Peru 88,084 37,467 119.7 50.9 39.0 16.6 10,527 - 12.0 - Note: The order of the countries is the ranking of total external debt stock appearing in column No.3. Source: International Debt Statistics, 2023 and Quarterly Debt Statistics, World Bank. -86-Annexure XIV: Gross External Debt Position of Top Twenty Developing Countries (US$ million) 2022 Q4 (End-December 2022) 2023 Q3 (End-September 2023) 2023 Q4 (End-December 2023) Short- Short- Short- Term Sl. Term ED to Term ED to Country Name Short Long Short Long Debt to Short Long No. Total Debt to GDP Total Total Debt to GDP Run Run Run Run Total Run Run Total Debt ratio Total Debt Ratio Debt) (%) (%) (%) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) 1 China 1265190 1187575 2452765 51.6 13.7 1262223 1120653 2382876 53.0 1287403 1160134 2447537 52.6 13.9 2 Brazil 67772 613304 681076 10.0 34.9 77200 640190 717390 10.8 80492 652164 732655 11.0 33.7 3 India 127871 483866 611737 20.9 18.2 129320 507986 637306 20.3 126320 521872 648192 19.5 18.1 4 Mexico 54767 527472 582239 9.4 39.8 62041 521108 583150 10.6 60139 533857 593996 10.1 33.2 5 Turkiye 148601 309351 457952 32.4 50.6 167932 313388 481321 34.9 174024 325862 499886 34.8 45.1 6 Indonesia 33231 363448 396679 8.4 30.1 35095 359148 394243 8.9 39361 367745 407107 9.7 29.7 7 Russian 70286 314794 385081 18.3 16.9 80684 243181 323865 24.9 83950 232897 316847 26.5 15.9 Federation 8 Argentina 47513 228960 276473 17.2 43.8 51276 233055 284331 18.0 52436 233515 285951 18.3 43.7 9 Saudi Arabia 43755 222819 266574 16.4 24.0 55301 224878 280179 19.7 59651 240113 299764 19.9 28.1 10 Malaysia 109137 143854 259384 42.1 63.7 112908 147705 266953 42.3 112909 151231 270616 41.7 65.1 11 Chile 24220 205620 229840 10.5 76.1 21670 210985 232656 9.3 20291 220678 240968 8.4 71.8 12 Thailand 68312 131977 200289 34.1 40.4 66704 123302 190006 35.1 67775 125438 193212 35.1 37.5 13 Colombia 19364 164454 183818 10.5 53.2 18829 171706 190535 9.9 19921 176440 196360 10.1 54.0 14 South Africa 34106 130175 164281 20.8 40.6 32704 123392 156096 21.0 31894 126187 158081 20.2 41.9 15 Egypt, Arab 30246 132681 162928 18.6 34.3 30269 134253 164522 18.4 29483 138551 168034 17.5 42.7 Rep. 16 Kazakhstan 16347 144261 160608 10.2 71.2 18125 144564 162689 11.1 19243 143455 162697 11.8 62.5 17 Romania 22676 130793 153469 14.8 50.9 21658 149790 171448 12.6 25031 162911 187942 13.3 54.3 18 Ukraine 8147 122811 130958 6.2 81.6 10087 140851 150938 6.7 9566 151967 161533 5.9 91.2 19 Pakistan 8768 118150 126919 6.9 33.9 8738 121004 129742 6.7 8878 122281 131159 6.8 38.8 20 Philippines 16619 94649 111268 14.9 27.5 17158 101675 118833 14.4 17096 108298 125394 13.6 28.7 -87-External Debt Position of BRICS 2022 Q4 (End-December 2022) 2023 Q3 (End-September 2023) 2023 Q4 (End-December 2023) Ratio of Ratio of Ratio of Short- External Short- Short- External Sl. Term Country Name Short Long Debt to Short Long Term Short Long Term Debt to No. Total Debt to Total Total Run Run GDP Run Run Debt to Run Run Debt to GDP Total ratio Total Debt Total Ratio Debt (%) Debt (%) (%) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) 1 China 1265190 1187575 2452765 51.6 13.7 1262223 1120653 2382876 53.0 1287403 1160134 2447537 52.6 13.9 2 Brazil 67772 613304 681076 10.0 34.9 77200 640190 717390 10.8 80492 652164 732655 11.0 33.7 3 India 127871 483866 611737 20.9 18.2 129320 507986 637306 20.3 126320 521872 648192 19.5 18.1 4 Russian Federation 70286 314794 385081 18.3 16.9 80684 243181 323865 24.9 83950 232897 316847 26.5 15.9 5 South Africa 34106 130175 164281 20.8 40.6 32704 123392 156096 21.0 31894 126187 158081 20.2 41.9 Note: The order of the countries‘ is the ranking of total external debt stock. Source: Quarterly External Debt Statistics (QEDS) and World Economic Outlook (WEO), IMF -88-Annexure XV: External Debt Position of Top 20 Debtor Countries in the World (US$ million) 2022 Q4 (End-December 2022) 2023 Q3 (End-September 2023) 2023 Q4 (End-December 2023) Sl. ED to ED to Country Name Short No. Short Run Long Run Total GDP Short Run Long Run Total Long Run Total GDP Run ratio Ratio (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 1 United States 80,09,392 1,66,30,669 2,46,40,061 95.7 82,76,203 1,73,73,404 2,56,49,607 82,10,778 1,77,73,871 2,59,84,649 95.0 2 United Kingdom 66,78,105 24,84,222 91,62,327 295.5 67,40,822 25,25,700 92,66,522 67,40,822 28,08,362 96,43,779 288.3 3 France 32,49,619 36,68,466 69,18,086 248.8 34,99,372 39,20,400 74,19,771 34,29,522 42,13,028 76,42,550 252.1 4 Germany 27,05,314 37,67,128 64,72,441 158.4 24,76,145 39,29,562 64,05,708 25,61,926 41,88,759 67,50,685 151.5 5 Japan 31,34,670 12,55,752 43,90,423 103.1 31,99,617 11,65,566 43,65,183 32,44,993 12,11,571 44,56,564 105.8 6 Netherlands 10,53,169 27,75,937 38,29,107 379.0 11,42,072 27,88,188 39,30,261 10,57,763 28,09,946 38,67,710 346.2 7 Luxembourg 9,75,340 27,63,943 37,39,283 4576.5 9,67,170 27,64,987 37,32,157 10,04,683 27,82,451 37,87,134 4414.9 8 Ireland 11,83,978 19,32,677 31,16,655 584.1 11,96,645 19,75,404 31,72,049 11,94,372 19,49,952 31,44,324 576.1 9 Canada 10,39,380 17,50,620 27,90,000 129.1 11,49,054 17,63,206 29,12,260 12,81,577 18,48,799 31,30,376 146.3 10 Italy 12,17,298 14,39,363 26,56,661 128.4 11,35,601 15,30,555 26,66,156 10,93,037 17,12,311 28,05,349 124.4 11 Spain 10,98,751 13,82,806 24,81,557 174.9 10,38,469 14,68,728 25,07,197 10,85,336 15,87,817 26,73,153 169.1 12 China 12,65,190 11,87,575 24,52,765 13.7 12,62,223 11,20,653 23,82,876 12,87,403 11,60,134 24,47,537 13.9 13 Switzerland 12,02,469 11,22,913 23,25,382 284.1 10,98,279 11,39,639 22,37,918 11,05,203 11,77,062 22,82,266 257.8 14 Singapore 12,45,988 6,92,941 19,38,930 389.0 12,48,222 6,75,276 19,23,498 12,97,801 6,99,202 19,97,003 398.3 15 Hong Kong SAR, 11,49,846 6,29,547 17,79,393 496.1 11,36,332 7,03,060 18,39,392 11,46,486 6,92,257 18,38,743 487.8 China 16 Australia 3,89,361 11,06,134 14,95,494 86.7 3,89,027 11,06,112 14,95,139 4,12,391 12,04,170 16,16,561 92.8 17 Belgium 5,41,501 8,64,443 14,05,944 240.8 6,04,001 8,78,420 14,82,421 5,87,762 9,42,316 15,30,078 242.8 18 Sweden 3,54,704 6,26,460 9,81,164 166.2 3,58,845 6,45,177 10,04,022 3,49,602 6,93,233 10,42,834 175.8 19 Austria 2,37,398 4,72,511 7,09,910 150.7 2,56,649 4,89,863 7,46,513 2,53,786 5,30,288 7,84,074 150.9 20 Norway 3,32,701 4,36,939 7,69,640 129.6 2,92,689 4,15,399 7,08,088 3,29,599 4,39,272 7,68,871 158.4 The order of the countries‘ is the ranking of total external debt stock appearing in column no.12.. Source: Quarterly External Debt Statistics (QEDS) and World Economic Outlook (WEO), IMF -89-Annexure XVI: Creditor-wise Sovereign External Debt (Rs. Crore) Sl. Category 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PR 2024 P No. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) External Debt on Govt. 3,32,004 3,74,483 3,66,193 4,06,589 4,08,108 4,45,289 4,74,551 5,44,582 6,14,447 6,58,971 7,48,926 7,96,078 Account under External I. Assistance (A+B) A. Multilateral (1 to 5) 2,35,671 2,68,490 2,69,430 2,94,122 2,88,260 3,04,595 3,20,336 3,62,042 4,19,319 4,60,547 5,21,803 5,56,039 1 IDA 1,41,119 1,61,164 1,52,170 1,63,771 1,54,050 1,60,970 1,57,188 1,62,506 1,61,408 1,57,206 1,53,737 1,38,007 2 IBRD 48,239 53,433 57,107 61,553 60,681 61,663 67,248 82,796 99,216 1,13,578 1,35,746 1,56,760 3 ADB 44,301 51,469 57,743 66,063 70,151 76,809 87,612 1,03,062 1,17,207 1,35,231 1,61,224 1,79,159 4 IFAD 1,789 2,182 2,145 2,458 2,423 2,786 3,003 3,578 3,638 3,749 3,915 4,037 5 Others 223 242 265 277 955 2,368 5,284 10,100 37,849 50,782 67,182 78,075 B. Bilateral (6 to 11) 96,333 1,05,993 96,763 1,12,467 1,19,848 1,40,694 1,54,215 1,82,540 1,95,128 1,98,423 2,27,123 2,40,039 6 Japan 73,120 79,825 75,253 90,112 97,433 1,12,650 1,22,498 1,44,456 1,47,581 1,48,400 1,69,381 1,72,802 7 Germany 13,826 16,085 12,611 13,575 12,597 15,398 15,466 17,433 22,928 21,747 22,615 23,902 8 United States 1,460 1,453 1,329 1,215 1,010 846 725 605 425 348 274 180 9 France 1,514 2,517 2,058 2,467 2,957 4,345 4,913 6,422 8,469 8,262 9,402 9,852 10 Russian Federation 6,397 6,099 5,504 5,094 5,848 7,453 10,611 13,621 15,722 19,664 25,448 32,466 11 Korea 0 0 0 0 0 0 0 0 0 0 0 834 12 Others 16 14 8 4 3 2 2 2 2 2 2 3 Total Other Govt. External 1,10,514 1,29,116 1,95,083 2,14,765 2,13,882 2,81,599 2,41,964 2,12,153 1,99,198 3,34,103 3,47,404 4,43,624 II. Debt [C+D] C. Other Govt. External Debt 89,918 1,06,391 1,94,369 2,14,051 2,13,240 2,79,813 2,40,143 2,10,331 1,97,243 3,27,323 3,42,089 4,41,751 (Long-term) D. Other Govt. External Debt 20,596 22,725 714 714 642 1,786 1,820 1,822 1,955 6,780 5,314 1,873 (Short-term) Total Government External 4,42,518 5,03,599 5,61,276 6,21,354 6,21,990 7,26,888 7,16,515 7,56,735 8,13,645 9,93,074 10,96,32 12,39,70 III. Debt (I+II) 9 3 Total External Debt 22,24,73 26,82,21 29,71,54 32,18,87 30,60,53 34,41,09 37,54,872 41,97,652 47,00,44 47,00,44 51,31,03 55,34,06 IV. 4 4 2 5 7 0 6 6 1 2 -90-Memo Items : a) Total Sovereign External 4.4 4.5 4.4 4.5 4.2 4.3 3.8 3.7 4.1 4.2 4.1 4.2 Debt to GDP (%) b) Total External Assistance to 3.3 3.3 2.9 3.0 2.7 2.6 2.5 2.7 3.1 2.8 2.8 2.7 GDP (%) Source: Based on data received from RBI, CCIL, CAAA and Ministry of Defence. PR: Partially Revised; P: Provisional -91-Annexure XVII: Creditor-wise Sovereign External Debt (US$ billion) Sl. Category 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PR 2024 P No. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) I. External Debt on Govt. Account 61,335 62,204 58,462 61,060 62,800 68,574 68,842 72,734 84,535 86,703 91,069 95,469 under External Assistance (A+B) A. Multilateral (1 to 5) 43,538 44,598 43,014 44,170 44,358 46,907 46,471 48,354 57,689 60,596 63,451 66,683 Multilateral Credit as percent of Govt. 71.0 71.7 73.6 72.3 70.6 68.4 67.5 66.5 68.2 69.9 69.7 69.8 Account debt 1. IDA 26,071 26,771 24,293 24,594 23,705 24,789 22,803 21,704 22,206 20,684 18,694 16,550 2. IBRD 8,912 8,876 9,117 9,244 9,338 9,496 9,756 11,058 13,650 14,944 16,507 18,799 3. ADB 8,184 8,549 9,219 9,921 10,795 11,828 12,710 13,765 16,125 17,793 19,605 21,486 4. IFAD 330 362 342 369 373 429 436 478 501 493 476 484 5. Others 41 40 43 42 147 365 767 1,349 5,207 6,682 8,169 9,363 B. Bilateral (6 to 12)a 17,797 17,606 15,448 16,890 18,442 21,667 22,372 24,380 26,845 26,107 27,618 28,786 Bilateral Credit as percent of Govt. 29.0 28.3 26.4 27.7 29.4 31.6 32.5 33.5 31.8 30.1 30.3 30.2 Account debt 6. Japan 13,508 13,259 12,014 13,533 14,993 17,348 17,771 19,293 20,304 19,526 20,597 20,723 7. Germany 2,554 2,672 2,013 2,039 1,938 2,371 2,244 2,328 3,154 2,861 2,750 2,866 8. United States 270 241 212 182 155 130 105 81 59 46 33 22 9. France 280 418 329 371 455 669 713 858 1,165 1,087 1,143 1,182 10. Russian Federation 1,182 1,013 879 764 900 1,148 1,539 1,819 2,163 2,587 3,095 3,893 11. Korea 0 0 0 0 0 0 0 0 0 0 0 100 12. Others 3 3 1 1 1 0 0 0 0 0 0 0 II. Total Other Govt. External Debt 20,318 21,491 31,255 32,507 32,979 43,363 34,980 28,142 27,100 44,073 42,254 53,219 (C+D) Other Govt. External Debt (Long 16,532 17,710 31,141 32,269 32,880 43,088 34,717 27,901 26,834 43,178 41,608 52,995 C. term) Other Govt. External Debt (Short- 3,786 3,781 114 238 99 275 263 242 266 894 646 225 D. term) III. Total Sovereign External Debt (I+II) 81,653 83,695 89,717 93,567 95,779 1,11,937 1,03,823 1,00,876 1,11,635 1,30,776 1,33,324 1,48,689 Source: Based on the data from RBI, CAAA, CCIL and Ministry of Defence a: Includes civilian component of rupee debt. PR: Partially Revised; P: Provisional -92-Annexure XVIII: Currency Composition of Sovereign External Debt (Per cent) Sl. Currency 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PR 2024 P No. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 1 US Dollar 26.3 26.2 24.4 24.0 24.4 22.1 25.8 29.8 35.5 34.1 37.3 37.5 2 SDR 36.0 37.4 30.8 30.2 28.5 25.8 25.5 24.9 22.6 31.1 28.5 24.0 3 Indian Rupee 17.7 16.3 28.8 28.7 28.9 33.7 28.4 22.5 19.2 16.2 15.0 21.1 4 Japanese Yen 16.5 16.3 13.4 14.5 15.7 15.5 17.1 19.1 18.2 14.9 15.4 13.9 5 Euro 3.5 3.8 2.6 2.6 2.5 2.9 3.2 3.7 4.4 3.6 3.7 3.5 6 Pound sterling 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 7 Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total (1 to 7) 100 100 100 100 100 100 100 100 100 100 100 100 Source: Based on data received from RBI, CAAA, SEBI and Ministry of Defence. PR: Partially revised; P: Provisional -93-Annexure XIX: Sovereign External Debt Service Payments (US$ million) Sl.No. Debt Service Payments 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) I. Debt Service Payments under 3,655 3,890 4,091 4,823 5,023 5,632 5,770 5,882 5,542 6,396 8,991 Government Account (A+B) A Multilateral (i + ii) 2,272 2,626 2,935 3,500 3,719 4,241 4,363 4,465 4,250 5,042 7,540 i. Principal 1,944 2,306 2,600 3,001 3,092 3,382 3,411 3,482 3,420 3,799 4,487 ii. Interesta 328 320 335 499 627 860 952 983 830 1,243 3,053 B Bilateral (iii +iv) 1,383 1,264 1,156 1,323 1,304 1,391 1,407 1,416 1,293 1,354 1,450 iii. Principal 1,067 983 901 1,031 1,017 1,077 1,115 402 389 1,057 1,129 iv. Interest 316 281 255 292 287 314 292 1,014 903 297 321 II. Other Government Debt Service 52 81 73 99 75 1,134 2,572 2,481 1,399 1,437 1,029 Payments (v + vi) v. Principal 52 81 73 99 75 32 387 1,054 271 602 166 vi. Interest 0 0 0 0 0 1,102 2,184 1,426 1,128 835 863 III. Total Government External 3,707 3,971 4,164 4,922 5,098 5,663 6,328 7,384 6,759 7,832 10,020 Debt Service Payments (I+II) vii. Total Principal (i+ iii + v) 3,063 3,370 3,574 4,130 4,184 4,491 4,607 3,960 3,898 5,457 5,783 viii. Total Interest (ii + iv + vi) 644 601 590 792 914 1,173 1,721 3,424 2,861 2,375 4,237 Note: 1. Debt service payments on account of FII investment in Government securities and defence debt are not included till 2017-18 2. Debt service payments on account of Investment in Treasury Bills by foreign central banks and international institutions etc. and SDR are not included. a: Though IDA loans are interest-free, the service charges associated with it are treated as ‘interest payments’. -94-Annexure XX: Central Government Guarantees on External Debt (US$ million) Sl. Component 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 PR 2024 P No. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 1 Government Debt 81,654 83,695 89,717 93,567 95,779 1,11,937 1,03,823 1,00,876 1,11,635 1,30,776 1,33,324 1,48,689 2 Non-Government Debt 3,27,720 3,62,483 3,84,958 3,91,224 3,75,233 4,17,354 4,39,290 4,57,561 4,62,028 4,88,300 4,90,736 5,15,071 of which with 3 Government 9,536 9,913 9,577 10,086 10,171 10,540 11,420 11,469 11,673 11,357 11,049 10,386 Guaranteed*: (a+b+c) a. Financial Sector 2,748 2,741 2,448 2,657 3,791 3,315 3,133 3,552 3,486 3,277 3,093 2,842 b. Public Sector 6,777 7,172 7,129 7,411 6,236 7,004 7,957 7,917 8,188 8,080 7,956 7,544 c. Private Sector 0 0 0 0 0 0 0 11 18 144 221 330 4 Total External Debt (1+2) 4,09,374 4,46,178 4,74,675 4,84,791 4,71,012 5,29,291 5,43,112 5,58,437 5,73,663 6,19,076 6,24,060 6,63,760 Government and 5 Government Guaranteed 91,190 93,608 99,294 1,03,523 1,05,950 1,22,477 1,15,243 1,12,345 1,23,308 1,42,133 1,44,373 1,59,075 Debt (1+3) Govt. and Government 22.3 21.0 20.9 21.3 21.8 23.1 21.2 20.1 21.5 23.0 23.1 24.0 A. Guaranteed Debt to Total External Debt (Per cent) Govt. Guaranteed Debt to 2.3 2.2 2.0 2.1 2.1 2.0 2.1 2.1 2.0 1.8 1.8 1.6 B. Total External Debt (Per cent) 2.9 2.7 2.5 2.6 2.6 2.5 2.6 2.5 2.5 2.3 2.3 2.0 Govt. Guaranteed to Total C. Non-Govt. Debt (Per cent) Source: Based on the data from RBI, CAAA, SEBI, CCIL and Ministry of Defence PR: Partially Revised; P: Provisional * Direct Credit guarantees on non-government external debt provided by the Central Government. -95-AnnexureXXI: Creditor-wise External Debt Service Payments on Government Account under External Assistance (US$ million) 2020-21 2021-22 2022-23 (PR) 2023-24 (P) Sl. No. Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total I. External Debt on Govt. Account under External 3,884 1,998 5,882 3,809 1,733 5,542 4,855 1,540 6,396 5,616 3,374 8,991 Assistance (A+B) A. Multilateral* (1 to 9) 3,482 983 4,465 3,420 830 4,250 3,799 1,243 5,042 4,487 3,053 7,540 1 ADB 847 249 1,097 920 124 1,044 884 382 1,266 1,188 1,157 2,345 2 AIIB 0 22 22 0 26 26 26 81 107 66 234 300 3 EEC (SAC) 0 2 2 0 2 2 1 0 1 1 0 1 4 EIB 4 1 5 10 1 11 19 5 24 36 41 77 5 IBRD 973 230 1,203 983 144 1,126 955 422 1,377 1,024 1,024 2,048 6 IDA 1,652 258 1,910 1,492 238 1,730 1,850 220 2,070 2,073 338 2,411 7 IFAD 5 1 6 5 1 6 25 5 30 29 5 34 8 NDB 0 37 37 10 44 54 36 129 165 68 254 322 9 OPEC 0 183 183 0 250 250 2 0 2 2 1 3 B. Bilateral (10 to 15) 402 1,014 1,416 389 903 1,293 1,057 297 1,354 1,129 321 1,450 10 Germany 28 893 922 32 830 861 215 28 243 271 44 315 11 France 10 0 10 10 0 10 64 15 79 78 45 123 12 Japan 242 0 242 233 0 233 758 190 948 769 184 953 13 Russian Federation 119 98 218 112 61 174 7 63 70 0 46 46 14 Switzerland 0 23 23 0 12 12 0 0 0 0 0 0 15 USA 2 0 2 2 0 2 12 1 14 12 1 13 Source: CAAA PR: Partially Revised, P: Provisional. *Note: It may be noted that in year 2017-18, three (3) multilateral agencies i.e. European Investment Bank (EIB), New Development Bank (NDB) (with US$0.33 million Interest on Government Account) and Asian Infrastructure Investment Bank (AIIB) (with US$0.98 Interest on Government Account) were newly added in the creditor list. -96-Annexure XXII: Projections of External Debt Service Payments on Sovereign Debt - Creditor-wise (US$ million) Total of 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032 Component 2024-25 2024-25 onwards (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) Multilateral Principal 1627 1112 1819 1142 5699 6554 6892 6784 6809 6648 5953 5396 15696 Interest 548 331 508 337 1723 1760 1755 1698 1628 1511 1351 1215 11323 Bilateral Principal 951 382 329 462 2123 1822 1730 1851 2230 2399 2531 2562 11538 Interest 82 42 94 141 359 384 404 423 433 421 389 356 5679 Other Govt Debt * Principal 114 6 480 126 726 1662 4947 3139 4159 2195 2790 1769 9037 Interest 630 442 626 442 2139 2062 1906 1552 1357 1076 903 739 3651 Total Principal 2691 1499 2628 1730 8548 10037 13569 11775 13197 11241 11274 9727 36271 Interest 1260 814 1227 920 4221 4206 4065 3674 3417 3009 2643 2309 20653 Source: CAAA and CCIL * Converted into US$ million with the exchange rate as on 28th March 2024. Note: 1. Bilateral includes export credit component of bilateral credit and civilian rupee debt. 2. Other Govt. Debt includes FPI investment of Govt Securities and State Development Loans 3. Debt Service Payment for SDR and Defence Debt are not included in this table. 4. The projections do not include debt service arising out of Committed Undisbursed Balance (CUB) and fresh borrowings. -97-Annexure XXIII: External Commercial Borrowingsa Approvalsb Gross Amortisationc Interestc Total Debt Servicec Debt Year Disbursementc Outstandingc (1) (2) (3) (4) (5) (6) (7) 1990-91 1,903 1,700 1,191 1,042 2,233 13,909 1991-92 2,127 2,798 1,146 994 2,140 15,557 1992-93 2,200 1,001 1,357 917 2,274 15,818 1993-94 2,585 1,859 1,703 896 2,599 16,650 1994-95 4,469 2,670 2,513 1,091 3,604 18,037 1995-96 6,286 4,538 3,311 1,162 4,473 19,024 1996-97 8,581 7,018 4,032 1,177 5,209 20,261 1997-98 8,712 7,400 3,411 1,406 4,817 23,946 1998-99 5,200 6,927 3,153 1,575 4,728 28,182 1999-00 3,398 2,289 3,460 1,635 5,095 27,530 2000-01 2,837 9,295 5,043 1,683 6,726 30,922 2001-02 2,653 2,933 4,013 1,534 5,547 29,579 2002-03 4,235 3,033 5,001 1,180 6,181 28,074 2003-04 6,671 5,149 8,015 2,031 10,046 25,809 2004-05 11,490 9,094 3,571 959 4,530 31,595 2005-06 17,175 14,606 11,518 2,996 14,514 32,371 2006-07 24,492 20,727 3,785 1,709 5,494 48,459 2007-08 28,842 29,112 6,063 2,630 8,693 71,051 2008-09 16,517 14,024 6,426 2,702 9,128 77,862 2009-10 21,703 15,951 11,501 2,397 13,898 82,518 2010-11 25,012 23,008 10,440 2,584 13,024 1,08,328 2011-12 35,240 31,791 16,478 4,326 20,804 1,26,288 2012-13 30,992 28,563 16,355 4,990 21,345 1,38,735 2013-14 30,563 29,901 17,778 4,739 22,517 1,49,146 2014-15 27,415 29,454 26,000 4,886 30,886 1,46,097 2015-16 23,519 23,611 26,725 4,976 31,701 1,46,104 2016-17 20,052 21,228 25,642 4,894 30,536 1,36,239 2017-18 27,199 27,090 24,834 5,288 30,122 1,26,443 2018-19 38,589 32,136 18,913 6,289 25,202 1,37,035 2019-20 47,184 47,676 17,971 6,839 24,810 1,64,805 2020-21 31,999 33,658 29,426 6,689 36,115 1,68,555 -98-2021-22 37,331 34,340 21,389 6,399 27,788 1,77,848 2022-23 PR 26,208 24,268 23,698 8,345 32,043 1,75,219 2023-24 P 48,360 38,794 29,678 10,546 40,225 1,80,756 PR: Partially Revised; P:Provisional. a: The definition of commercial borrowing includes loans from commercial banks, other commercial financial institutions, money raised through issue of securitised instruments like Bonds(including India Development Bonds (IDBs) and Resurgent India Bonds (RIBs), Floating Rate Notes (FRN), etc. It also includes borrowings through Buyers' credit & Supplier credit mechanism, of concerned countries, International Finance Corporation, Washington [IFC(W)], Nordic Investment Bank and private sector borrowings from Asian Development Bank (ADB). b: Based on date of agreement of the loan which may differ from the date of granting the loan registration number by the RBI. Ceiling on ECB approvals is fixed on the basis of the latter, which may either be after or before the date of agreement of the loan. Hence, there may be some difference between the amount shown under approvals in the table and the amount of ceiling fixed for a particular year. c: May show small variation as compared to other figures given elsewhere in this Report due to differences in classification. Note: Disbursements during 1998-99 and 2000-01 include RIBs (US$4.2 billion) and IMDs (US$5.5 billion), respectively. Debt service payments during 2003-04 and 2005-06 include redemption of RIBs {US$5.2 billion (principal US$ 4.2 billion and interest US$1 billion)} and IMDs {US$7.1 billion (principal US$5.5 billion and interest US$1.6 billion)}, respectively. -99-