Question : External Debt

(a) the details of the external debt of the country, both long-term as well as short-term, during the last three years along with the rates of interest applicable thereon;

(b) the rank of India among the debt-ridden countries of the world;

(c) the details of the total amount repaid in the form of principal and interest to the foreign lenders during each of the last three years and the current year along with the total amount outstanding as on date, country-wise and institution-wise; and

(d) the details of steps taken by the Government to lessen the loan burden of the country?

THE FINANCE MINISTER
(SMT. NIRMALA SITHARAMAN)

(a) to (d): A Statement is laid on the Table of the House.



STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA
STARRED QUESTION NO. 141 BY KUNWAR DANISH ALI
DUE FOR ANSWER ON MARCH 2, 2020
…..

(a) & (c): Owing to strong macroeconomic fundamentals including a manageable current account deficit, India’s external debt to GDP ratio has been low at about 20 percent of GDP during the last three years. Data on India’s external debt, principal and interest paid to foreign lenders are placed at Annexure.

(b): As per IMF and World Bank data, India’s external debt to gross national income (GNI) ratio in 2018 was lowest among the advanced nations of G-20 and 36 OECD (Organization for Economic Cooperation and Development) countries. India’s external debt to GNI ratio was also lower than two-thirds of around 150 low and middle income countries. Further, India’s external debt per citizen in 2018 was less than all G-20 and OECD countries.

(d): India’s external debt burden is very low. For raising the investment rate in the economy, there is a need to increase foreign borrowings to take advantage of lower rate of interest abroad.
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Annexure

External debt outstanding - Annexure to Part (a)
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Year Long Term Short Term Total Interest rate
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(year end figures in US$ billion) percent
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2016-17 383.2 88.1 471.3 3.5
2017-18 427.1 102.2 529.3 3.4
2018-19 434.8 108.4 543.2 4.0
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Source: External Debt Management Unit (EDMU), Aid Accounts & Audit Division (CAAA),
D/o Economic Affairs, M/o Finance and RBI.
Note: Interest rate is calculated as (total interest payments on long term debt during a year / (outstanding long term debt at year end).


Principal and interest payments - Annexure to Part (c)
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Year Multilateral Bilateral
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Principal Interest Outstanding Principal Interest Outstanding
debt debt
(year end) (year end)
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All figures in US$ million
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2016-17 4,062 761 59,912 2,189 537 25,906
2017-18 4,016 960 63,033 2,283 482 28,321
2018-19 4,386 1,383 62,977 2,062 679 28,563
2019-20
(Apr-Sep) 2,358 925 64,207 834 266 29,471
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Source: External Debt Management Unit (EDMU), Aid Accounts & Audit Division (CAAA),
D/o Economic Affairs, M/o Finance and RBI.
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