India’s external debt as of March 2024 stood at $663.8 billion, marking a $39.7 billion increase from the previous year, excluding valuation effects which would have shown a $48.4 billion rise. The composition of external debt includes various currencies:
- USD: 53.8%
- INR: 31.5%
- JPY: 5.8%
- SDR: 5.4%
- EUR: 2.8%
Debt Components
The structure of India’s external debt includes:
- Loans: 33.4%
- Currency and Deposits: 23.3%
- Trade Credit and Advances: 17.9%
- Debt Securities: 17.3%
Government vs. Non-Government Debt
- Government Debt: 4.2% of GDP
- Non-Government Debt: 14.5% of GDP
Debt Maturity
- Long-term Debt (over one year): $541.2 billion, showing an increase of $45.6 billion from the previous year.
- Short-term Debt (up to one year): 18.5% of total external debt, down from 20.6% in the previous year.
Multiple Choice Questions (MCQs):
- What was India’s external debt as of March 2024?
- A) $663.8 billion
- B) $39.7 billion
- C) $48.4 billion
- D) $541.2 billion
- Answer: A) $663.8 billion
- Which currency denomination formed the largest share of India’s external debt?
- A) Indian Rupee (INR)
- B) US Dollar (USD)
- C) Euro (EUR)
- D) Special Drawing Rights (SDR)
- Answer: B) US Dollar (USD)
- What percentage of India’s external debt consists of loans?
- A) 33.4%
- B) 23.3%
- C) 17.9%
- D) 17.3%
- Answer: A) 33.4%
- How did short-term debt as a percentage of total external debt change from March 2023 to March 2024?
- A) Increased
- B) Decreased
- C) Remained the same
- D) Not specified
- Answer: B) Decreased
- What was the ratio of government external debt to GDP at end-March 2024?
- A) 18.7%
- B) 19%
- C) 4.2%
- D) 14.5%
- Answer: C) 4.2%