Solution

External Debt Management Unit (EDMU) in the Department of economic Affairs, Ministry of Finance, has released 28th edition of the Status Report on India’s External Debt 2021-22. India’s external debt, at US$ 620.7 billion as at end-March 2022, grew by 8.2 % over US$ 573.7 billon as at end-March 2021. External debt as a ratio to GDP fell marginally to 19.9 % as at end-March 2022 from 21.2 % a year ago. Foreign currency reserves as a ratio to external debt stood slightly lower at 97.8 % as at end-March 2022 than 100.6 % a year ago. The long-term debt estimated at US$ 499.1 billion, constituted the largest chunk of 80.4 %, while the short-term debt, at US$ 121.7 billion, accounted for 19.6 % of the total. As at end-March 2022, sovereign external debt (SED) amounted to US$ 130.7 billion, increasing by 17.1 % over the level a year ago, reflecting the additional allocation of SDRs by the IMF during 2021-22. The debt service ratio fell to 5.2 % during 2021-22 from 8.2 % during 2020-21 due to buoyancy in current receipts and a decline in debt service payments.