Department of Economic Affairs(DEA), Ministry of Finance has recently released statistics on India’s External Debt at end-December 2016. According to the report, India’s external debt stock fell by US$ 29.0 billion (6.0 per cent) to US$ 456.1 billion, at end-December 2016 over the level at end-March 2016. The decline in external debt during the period was due to the fall in long-term external debt, particularly the fall in NRI deposits reflecting the redemption of FCNR (B) deposits and decline in commercial borrowings with fall in both commercial bank loans and securitized borrowings.
The maturity pattern of India’s external debt indicates dominance of long-term borrowings. At end-December 2016, long-term external debt accounted for 81.6 per cent of India’s total external debt, while the remaining 18.4 per cent was short-term debt. While long-term debt at US$ 372.2 billion, declined by US$ 29.4 billion (7.3 per cent) at end-December 2016 over the level at end-March 2016, short-term debt increased marginally by 0.5 per cent to US$ 83.8 billion.