Lok Sabha Question No. 2295 (UNSTARRED), answered on 2016-05-06
Subject: Indebtedness of India
Ministry: FINANCE
Asked by: SAKUNTALA LAGURI

- (a) whether the external debt of the country has witnessed an increase in 2015-16;
- (b)  if  so,  the  quarter-wise  details  of the Government and non-Government external debt in 2015-16 along with the reasons for this increase in external debt;
- (c) the value of foreign exchange paid as interest on such loans/debts during each of the last three financial years; and
- (d)  the  various  efforts  made  by  the  Government  to  reduce  the  burden  of  the  said  interest along with the outcome thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

- (a)  As per the latest available data, India's total external debt stock stood at US$480.2 billion at end-December 2015, recording an increase of US$ 4.9 billion (1.0 per cent) over the level at end-March 2015 and US$ 21.4 billion (4.7 per cent) over end-December 2014. However, on a sequential basis, total external debt at end-December 2015 declined by US$ 1.2 billion from the end-September 2015 level.
- (b)   The details of the quarter-wise Government and Non-Government external debt in 201516 are given below. The data for the fourth quarter i.e. end-March 2016 is not released yet. Total external debt has declined marginally in end-September and end-December 2015.
- (c)   Interest paid on external debt during the last three financial years  in US dollar terms is given below.

| (US$ million )   | (US$ million )      | (US$ million )   | (US$ million )      | (US$ million )     |
|------------------|---------------------|------------------|---------------------|--------------------|
| S.No.            |                     | End-June 2015    | End- September 2015 | End- December 2015 |
| 1                | Government Debt     | 89,476           | 88,805              | 90,676             |
| 2                | Non-Government Debt | 393,208          | 392,532             | 389,504            |
| 3                | Total External Debt | 482,684          | 481,337             | 480,180            |

| (US$ million)   | (US$ million)   | (US$ million)   |
|-----------------|-----------------|-----------------|
| S.No.           | End-March       |                 |
| 1               | 2012-13         | 10,944          |
| 2               | 2013-14         | 11,175          |
| 3               | 2014-15 PR      | 12,602          |

## PR: Partially Revised

- (d) India's external debt has remained within manageable limits as indicated by the external debt indicators. The prudent external debt management policy of the Government of India has helped in containing rise in external debt and maintaining a comfortable external debt position.  The  policy  continues  to  focus  on  monitoring  long  and  short-term  debt,  raising sovereign loans on concessional terms with longer maturities, regulating external commercial borrowings  through  end-use,  all-in-cost  and  maturity  restrictions;  and  rationalizing  interest rates  on  Non-Resident  Indian  deposits.  As  a  result,  India's  external  debt  to  GDP  ratio remained at a comfortable level of 23.8 per cent in 2014-15.