Sitharaman said, India’s external debt-service ratio is at a satisfactory level of 5.3 percent.
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In the introduction to ‘India’s External Debt: A Status Report 2022-23’ released earlier this month, Sitharaman said the ratio of external debt to gross domestic product (GDP) at the end of March 2023 will be 20 per cent from 20 per cent a year ago. Has decreased to 18.9 percent. He said long-term debt constituted 79.4 percent of the total foreign debt, while short-term debt constituted 20.6 percent of the total foreign debt.
India’s external debt stood at US$624.7 billion at the end of March 2023, and its debt-service ratio is 5.3 percent. Giving this information, Finance Minister Nirmala Sitharaman said that it is at a satisfactory level and is minor in terms of the country.
In the introduction to ‘India’s External Debt: A Status Report 2022-23’ released earlier this month, Sitharaman said the ratio of external debt to gross domestic product (GDP) at the end of March 2023 will be 20 per cent from 20 per cent a year ago. Has decreased to 18.9 percent. He said long-term debt constituted 79.4 percent of the total foreign debt, while short-term debt constituted 20.6 percent of the total foreign debt.
Short-term debt is mainly used to finance imports. The Finance Minister said that India’s external debt position as a whole is better than that of most low- and middle-income countries (LMICs). The report said that the debt service ratio has increased marginally to 5.3 percent during 2022-23 from 5.2 percent in the previous year. This comes as debt service payments have increased from US$41.6 billion in 2021-22 to US$49.2 billion in 2022-23.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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