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In another verification of how well the
Indian economy is performing, an
economic survey has highlighted that
India has one of the lowest Gross
Domestic Product to external debt
ratio next only to China. A ratio of
22% despite growing external debt
shows how well the economy is growing
keeping pace with the growth of debt.
India’s external debt is mainly long-term
debt, which makes up 90% of the total
and the rest from short-term debt.
While the growth of total debt is
9.8%, long-term debt grew by 8.3% in
line with overall economic growth.
Long-term debt includes multi-lateral
debt, bilateral debt, trade credit,
external commercial borrowings,
non-resident Indian (NRI) deposits,
and Rupee debt. For the first time
since the start of liberalization of
the economy in 1990s, external
commercial borrowings and trade credit
have grown faster than NRI deposits. |
