India's external debt increased from $404.9 billion to $426 billion between March and December 2013. This was mainly due to a rise in long-term debt, particularly an increase in NRI deposits under a special swap window. Long-term debt accounted for 78.2% of total external debt. Short-term debt declined slightly. The ratio of short-term debt to foreign exchange reserves fell to 31.5% while the ratio of concessional debt to total debt declined to 10.6%. Key factors contributing to the rise in external debt in recent times include increases in both long-term and short-term debt components.
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Promote international monetary cooperation;
Facilitate the expansion and balanced growth of international trade;
Promote exchange stability;
Assist in the establishment of a multilateral system of payments; and
Make resources available (with adequate safeguards) to members experiencing balance of payments difficulties.
The IMF is accountable to the governments of its member countries. At the top of its organizational structure is the Board of Governors, which consists of one Governor and one Alternate Governor from each member country.
The Board of Governors meets once each year at the IMF-World Bank Annual Meetings.
Twenty-four of the Governors sit on the International Monetary and Financial Committee (IMFC) and normally meet twice each year.
The IMF's day-to-day work is overseen by its 24-member Executive Board, which represents the entire membership, this work is guided by the IMFC and supported by the IMF staff.
The Managing Director is the head of the IMF staff and Chairman of the Executive Board and is assisted by four Deputy Managing Directors.
I’m a young Pakistani Blogger, Academic Writer, Freelancer, Quaidian & MPhil Scholar, Quote Lover, Co-Founder at Essar Student Fund & Blueprism Academia, belonging from Mehdiabad, Skardu, Gilgit Baltistan, Pakistan.
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Promote international monetary cooperation;
Facilitate the expansion and balanced growth of international trade;
Promote exchange stability;
Assist in the establishment of a multilateral system of payments; and
Make resources available (with adequate safeguards) to members experiencing balance of payments difficulties.
The IMF is accountable to the governments of its member countries. At the top of its organizational structure is the Board of Governors, which consists of one Governor and one Alternate Governor from each member country.
The Board of Governors meets once each year at the IMF-World Bank Annual Meetings.
Twenty-four of the Governors sit on the International Monetary and Financial Committee (IMFC) and normally meet twice each year.
The IMF's day-to-day work is overseen by its 24-member Executive Board, which represents the entire membership, this work is guided by the IMFC and supported by the IMF staff.
The Managing Director is the head of the IMF staff and Chairman of the Executive Board and is assisted by four Deputy Managing Directors.
The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.
Financial contagion refers to “the spread of market disturbances -- mostly on the downside -- from one country to the other, a process observed through co-movements in exchange rates, stock prices, sovereign spreads, and capital flows." Financial contagion can be a potential risk for countries who are trying to integrate their financial system with international financial markets and institutions. It helps explain an economic crisis extending across neighboring countries, or even regions.
credit is very important for business and economy. growth of economy depends on credit creation. commercial banks play an important role in it. but if it is uncontrolled then it can create fluctuations in economy. it can bring inflation or recession in economy.
in this PPT how commercial banks distribute loan and how it is affected by various factors are explained.
Understanding the network of Eurozone crises so that nodes of crises can be analyzed. We are interested in both financial and non-financial factors that are deepening the European crises.
The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.
Financial contagion refers to “the spread of market disturbances -- mostly on the downside -- from one country to the other, a process observed through co-movements in exchange rates, stock prices, sovereign spreads, and capital flows." Financial contagion can be a potential risk for countries who are trying to integrate their financial system with international financial markets and institutions. It helps explain an economic crisis extending across neighboring countries, or even regions.
credit is very important for business and economy. growth of economy depends on credit creation. commercial banks play an important role in it. but if it is uncontrolled then it can create fluctuations in economy. it can bring inflation or recession in economy.
in this PPT how commercial banks distribute loan and how it is affected by various factors are explained.
Understanding the network of Eurozone crises so that nodes of crises can be analyzed. We are interested in both financial and non-financial factors that are deepening the European crises.
I’m a young Pakistani Blogger, Academic Writer, Freelancer, Quaidian & MPhil Scholar, Quote Lover, Co-Founder at Essar Student Fund & Blueprism Academia, belonging from Mehdiabad, Skardu, Gilgit Baltistan, Pakistan.
I am an academic writer & freelancer! I can work on Research Paper, Thesis Writing, Academic Research, Research Project, Proposals, Assignments, Business Plans, and Case study research.
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India’s Resilient External Debt
Summary:
The official documents published by GOI and RBI make incisive analysis of the composition, size, sustainability, trend and overall management of India’s external debt.
As per RBI, the country’s external debt stock which stood at US$ 405 billion as at June-end 2013 has increased to US$ 450.1 billion as at June-end 2014 registering an increase of 11.1 per cent.
According to IMF, debt service -to-export ratio is a key indicator as a measure of repaying capacity of a country. The lower the ratio, the less vulnerable is the economy to external shocks. The debt service ratio of India which peaked 35.3 per cent in 1990-91 in the wake of Balance of Payment crisis declined to 16.6 per cent in 2000-01 and further brought down to a more comfortable level of 5.9 per cent in 2013-14. The import cover of reserves, which stood at 9.5 months at end-March 2011 has declined to 7.0 months at the end-March 2013, still above comfort level. The CAD to GDP ratio deteriorated to 4.7 per cent in 2012-13, mainly on account of slowdown in major trading partners and rise in gold imports. It, however, improved to 1.7 per cent in 2013-14 due to measures taken by policy makers. The rising level of external debt does not necessarily translate into increasing debt burden, as it would also depend on the growth, growth potential of the economy and the export earnings.
I
ndia’s external debt is characterized by resilience and sustainability. The country’s external debt statistics are compiled and disseminated by Government of India (GOI) and Reserve Bank of India (RBI) on a quarterly basis. As per the standard practice, the external debt data for the quarter ending March and June are released by RBI; the data as at September-end and December-end are disseminated by the Ministry of Finance, GOI. Further, Ministry of Finance publishes every year “India’s External Debt-A Status Report” as at March-end. These official documents make incisive analysis of the composition, size, sustainability, trend and overall management of India’s external debt.
As per RBI, the country’s external debt stock which stood at US$ 405 billion as at June-end 2013 has increased to US$ 450.1 billion as at June-end 2014 registering an increase of 11.1 per cent.
The composition of India’s external debt is shown below:
[Amount: US$ billion]
Composition June 2013 June 2014
Multilateral 51.72 53.74
Bilateral 24.82 24.72
Trade Credit 17.53 16.04
Commercial Borrowing 135.81 153.85
NRI Deposits 71.12 106.25
Short-Term ( Trade Credit) 96.76 87.90
International Monetary Fund 5.98 6.15
Rupee Debt 1.25 1.50
(Source: Reserve Bank of India, Press Release, September 30, 2014)
According to RBI’s Annual Report 2013-14, the country’s foreign exchange reserve recorded US$ 316.14 billion vis-à-vis ext
Net External Liabilities and Economic Growth: A Case Study of pakistansanaullah noonari
By using ordinary least square (OLS) method this study is conducted to see the impact of net external liabilities
on economic growth of Pakistan. Other statistical tools like unit root etc were applied to solve the data problem
as we use time series data for the period 1973-2012. The result of the study found that net external liabilities,
education enrolment, export and gross capital formation has positive significance association with GDP while
debt service relation was found insignificance.
Keywords: Net External Liabilities, Gross Domestic product, Debt service
China's Subnational Debts: Problems and Suggestions: Liu Shangxi, Research I...World Bank Publications
Presentation at Ministry of Finance, P.R. China-World Bank Summit on Subnational Debt Management and Restructuring, Nanning, Guangxi Province, P.R. China. October 22, 2015.
Public debt is intended to bridge the gap between domestic savings and investment. This paper examines the effect of public debt on economic growth in Bangladesh using autoregressive distributed lag bound testing approach to cointegration. It finds a negative relationship between public debt and economic growth both in the short-run and the long-run. That is, a significant rise in the public debt in Bangladesh appears to be a burden for the economic growth controlling for other determinants of growth. The findings suggest that funds obtained through public debt are not utilized in the productive economic avenues which may improve the growth scenario in Bangladesh. Also, the adverse effect exerted by public debt may further be responsible for a reduction in investment and slower growth of capital stock, which eventually can hamper the labour productivity growth in the country in long run.
US Federal Reserve has published the Projected, Adverse and Very Adverse situations and estimated the economic Scenarios. Well, Nothing seems to have been provided for ' Fiscal Cliff' and International slow Down
Greetings from National Institute of Securities Markets (NISM), a premier Institute promoted by SEBI for professionalizing personnel working in the Securities Markets.
This is to inform you about NISM's Post Graduate Programme in Securities Markets (PGPSM) and invite you for Placement Programme for 2014-15 batch.
PGPSM is a rigorously designed and internationally benchmarked One Year Full-time Programme focusing various aspects of securities markets and strengthened with delivery by a team of excellent faculty.
The students of this Programme are positioned to take up a wide range of responsibilities, such as Analysts, Investment Managers, Valuers of Asset Classes, Treasury & Risk Managers, Operational Managers, Compliance Officers, Financial Planners & Wealth Managers, Merchant Bankers, etc. During last 5 years, this Programme had received enthusiastic response from the Industry for placements and our alumni have been well acknowledged for their knowledge and shear hard work in various organization such as ICICI Bank, Kotak Securities, UTI Mutual Fund, Anand Rathi Securities, Mata Securities, CARE Rating, TCS, SWIFT etc.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
1. Team Members :
Peeyush Sahu
Abhishek Anand
Himanshu Varshney
Ravi Ranjan
PGPSM 2014-15
A
Status Report
on
2. Highlights:
(i) At end-December 2013, India’s external debt stock stood at US$ 426.0 billion, recording
an increase of US$ 21.1 billion (5.2 per cent) over the level of US$ 404.9 billion at end-
March 2013. India’s external debt to GDP ratio stood at 23.3 per cent at end-December
2013 vis-à-vis 21.8 per cent at end-March 2013.
(ii) The rise in external debt during the period was due to long-term debt particularly NRI
deposits. A sharp increase in NRI deposits reflected the impact of fresh FCNR(B) deposits
mobilized under the swap scheme during September-November 2013.
(iii) At end-December 2013, long-term external debt was US$ 333.3 billion, showing an
increase of 8.1 per cent over the end-March 2013 level of US$ 308.2 billion. Long-term
external debt accounted for 78.2 per cent of total external debt at end-December 2013 vis-
à-vis 76.1 per cent at end-March 2013.
(iv) Short-term external debt was US$ 92.7 billion at end-December 2013, showing a
decline of 4.1 per cent over US$ 96.7 billion at the end-March 2013. Short-term debt
accounted for 21.8 per cent of total external debt at end-December 2013 (23.9 per cent at
end-March 2013).
(v) Valuation gain (appreciation of US dollar against the Indian rupee and other major
currencies) was US$ 11.9 billion and as such accounted for the decline in the debt stock at
end-December 2013 of equivalent amount. This implies that the increase in debt would
have been US$ 33.0 billion at end-December 2013 had there been no valuation gain.
(vi) The shares of Government (Sovereign) and non-Government debt in the total external
debt were 17.9 per cent and 82.1 per cent respectively, at end-December 2013.
(vii) The share of US dollar denominated debt was the highest in the external debt stock
and stood at 63.6 per cent at end-December 2013, followed by debt denominated in Indian
rupee (19.4 per cent), SDR (7.1 per cent), Japanese yen (5.0 per cent) and Euro (3.1 per
cent).
(viii) The ratio of short-term external debt (original maturity) to foreign exchange reserves
stood at 31.5 per cent at end-December 2013 (33.1 per cent at end-March 2013).
(ix) The ratio of concessional debt to total external debt declined to 10.6 per cent
at end-December 2013 from 11.2 per cent at end-March 2013.
4. Introduction:
External debt (or foreign debt) is that part of the total debt in a country that
is owed to creditors outside the country. The debtors can be the government, corporations
or citizens of that country. The debt includes money owed to private commercial banks,
other governments, or international financial institutions such as the International Monetary
Fund (IMF) and World Bank.
"Gross external debt, at any given time, is the outstanding amount of those
actual current, and not contingent, liabilities that require payment(s) of principal and/or
interest by the debtor at some point(s) in the future and that are owed to nonresidents by
residents of an economy“
Outstanding and Actual Current Liabilities:
For this purpose, the decisive consideration is whether a creditor owns a
claim on the debtor. Here debt liabilities include arrears of both principal and interest.
Principal and Interest:
When this cost is paid periodically, as commonly occurs, it is known as an
interest payment. All other payments of economic value by the debtor to the creditor that
reduce the principal amount outstanding are known as principal payments. However, the
definition of external debt does not distinguish between whether the payments that are
required are principal or interest, or both. Also, the definition does not specify that the
timing of the future payments of principal and/or interest need be known for a liability to
be classified as debt.
Residence:
To qualify as external debt, the debt liabilities must be owed by a resident to
a nonresident. Residence is determined by where the debtor and creditor have their centers
of economic interest—typically, where they are ordinarily located—and not by their
nationality.
Current and Not Contingent:
Contingent liabilities are not included in the definition of external debt. These
are defined as arrangements under which one or more conditions must be fulfilled before a
financial transaction takes place. However, there is analytical interest in the potential
impact of contingent liabilities on an economy and on particular institutional sectors, such
as government.
Generally external debt is classified into four heads:
(1) public and publicly guaranteed debt
(2) private non-guaranteed credits;
(3) central bank deposits; and
(4) loans due to the IMF.
5. However the exact treatment varies from country to country. For example,
while Egypt maintains this four head classification, in India it is classified in seven heads:
(a) Multilateral
(b) Bilateral
(c) IMF loans
(d) Trade Credit
(e) Commercial Borrowings
(f) NRI Deposits
(g) Rupee Debt
(h) NPR Debt
Indicators of external debt sustainability:
There are various indicators for determining a sustainable level of external
debt. While each has its own advantage and peculiarity to deal with particular situations,
there is no unanimous opinion amongst economists as to one sole indicator. These
indicators are primarily in the nature of ratios i.e. comparison between two heads and the
relation thereon and thus facilitate the policy makers in their external debt management
exercise. These indicators can be thought of as measures of the country’s “solvency” in that
they consider the stock of debt at certain time in relation to the country’s ability to generate
resources to repay the outstanding balance.
Examples of debt burden indicators include the
(a) Debt to GDP ratio
(b) Foreign debt to exports ratio
(c) Government debt to current fiscal revenue ratio etc.
This set of indicators also covers the structure of the outstanding debt including the
(a) Share of foreign debt
(b) Short-term debt and
(c) Concessional debt in the total debt stock.
A second set of indicators focuses on the short-term liquidity requirements of
the country with respect to its debt service obligations. These indicators are not only useful
early-warning signs of debt service problems, but also highlight the impact of the inter-
temporal trade-offs arising from past borrowing decisions. Examples of liquidity monitoring
indicators include the:
(a) Debt service to GDP ratio
(b) Foreign debt service to exports ratio
(c) Government debt service to current fiscal revenue ratio etc.
6. The final indicators are more forward looking as they point out how the debt
burden will evolve over time, given the current stock of data and average interest rate. The
dynamic ratios show how the debt burden ratios would change in the absence of
repayments or new disbursements, indicating the stability of the debt burden. An example
of a dynamic ratio is the ratio of the average interest rate on outstanding debt to the
growth rate of nominal GDP.
External Debt Stock:
At end-December 2013, India’s total external debt stock was US$ 426.0
billion, showing an increase of US$ 21.1 billion (5.2 per cent) over the level of US$ 404.9
billion at end-March 2013 (Table 1). After declining for 2 quarters in a row, the stock of
external debt rose in the quarter ended December 2013 reflecting mainly the higher
mobilization under FCNR(B) deposits special swap window in September-November 2013.
Thus, long-term debt increased by US$ 25.1 billion (8.1 per cent) to US$ 333.3 billion. As a
proportion of total debt, long-term debt was 78.2 per cent.
Short-term debt on the other hand recorded a decline of 4.1 per cent to
reach US$ 92.7 billion and constituted 21.8 per cent of the total external debt at end-
December 2013. Short-term debt witnessed decline during the period due to Foreign
Institutional Investor (FII) outflows from the debt segment and fall in trade related credit.
Quarter-wise change in external debt position since March 2012 is given in
Table 2 below. External debt at end-December 2013 increased by 5.9 per cent over the
previous quarter (end September 2013) and 8.1 per cent over the corresponding
quarter of previous year (end-December 2012).
External Debt Indicators:
The share of short-term debt in total external debt decreased to 21.8 per
cent at end-December 2013 from 23.9 per cent at end-March 2013. India’s foreign
exchange reserves provided a cover of 69.0 per cent to the external debt stock at end-
December 2013 (72.1 per cent at end-March 2013). The ratio of short-term external debt
to foreign exchange reserves was 31.5 per cent at end-December 2013, as compared to
33.1 per cent at end-March 2013. The ratio of concessional debt to total external debt
declined to 10.6 per cent at end-December 2013 from 11.2 per cent at end-March 2013,
reflecting the increasing share of non-Government debt. The key external debt indicators
are presented in Table 3.
7.
8. Table 3: India’s Key External Debt Indicators
Key Components Causing Rise in India’s External Debt:
India’s external debt has witnessed substantial rise in recent period led by
both long-term as well as short-term debt components. Between end-March 2012 and end-
March 2013, long-term debt showed an increase of US$ 26.0 billion (9.7 per cent), while
the rise in short-term debt was US$ 18.5 billion (23.7 per cent). The sharp increase in
short-term debt was mainly on account of higher trade related credit. Of the total rise
(US$ 44.5 billion) of external debt at end-March 2013 over end March 2012, the
long-term debt accounted for 58.4 per cent of the total rise, while the rest (41.6 percent)
was on account of short-term debt.
The rise in long-term external debt was primarily due to higher
commercial borrowings and NRI deposits. The two components under long-term external
debt viz., commercial borrowings and NRI deposits have been major drivers of rise in
India’s external debt (Figure 2.5). The increase in commercial borrowings gives rise to
some concerns given that the depreciation of the rupee results in higher debt service
burden (in rupee terms) that may affect profitability and the balance sheets of corporate
that have large exposures to such borrowings.
9. Summary:
India's external debt (21.2 per cent of GDP) continues to be dominated by
borrowings of longer maturity. At end-March 2013, long-term debt accounted for 75.2 per
cent while the rest (24.8 percent) was short-term debt. The changing composition of
long term debt, as is evident from the decreasing shares of multilateral and bilateral
credit (and corresponding decline in the share of sovereign and concessional debt)
signifies a maturing market economy that is increasingly integrated into the world
economy. Though the rising shares of components viz. ECB are in line with the
broad policy orientation of the Indian economy (that has emphasized attracting foreign
savings into the economy over the past few decades), these developments signal
heightened exposure of the domestic corporate sector to external shocks including adverse
exchange rate movements.
Debt Service Payments:
India’s total external debt service payments at US$ 31.3 billion during 2012-
13, showed marginal improvement over the previous year. Debt service payments at this
level remain manageable as indicated by the debt service ratio of 5.9 per cent in
2012-13 viz’a’viz 6.0 per cent in 2011-12. Debt service on external commercial
borrowings, with share of 74.2 per cent, dominated the India’s total debt service payments,
followed by external assistance, NRI deposits and rupee debt. The dominance of
external commercial borrowings is an indication of growing recourse to the use of
ECBs by the companies to meet their financing requirements.
International Comparison:
International comparison based on World Bank's 'International Debt
Statistics 2013‘ indicates that India continues to be among the less vulnerable countries
and India’s key debt indicators compare well with other indebted developing countries.
India’s key debt indicators, especially debt to GNI ratio, debt service ratio, short-term to
total external debt and the cover of external debt provided by foreign exchange reserves
continues to be comfortable.
Sovereign External Debt:
Multilateral sources continue to dominate India’s sovereign external debt
and Japan remains the single largest bilateral creditor. A substantial portion of
sovereign external debt is denominated in SDRs mainly on account of borrowings from
IDA, as well as inclusion of ‘IMF Credits 'in the country’s external debt liabilities since
2004-05. Rupee denominated sovereign debt witnessed increase in recent period,
reflecting the liberalization of FII investment in Government Treasury/securities.
Government guaranteed external debt has continued to remain low.
10. External Debt Management:
India’s external debt has remained within manageable limits due to
prudent external debt management policy of the Government of India. 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.
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