Table 1 of India's External Debt Report (at the end of March 2019)

Table 1 of India's External Debt Report (at end of March 2019) indicates the composition of foreign debt in terms of following nature of borrowings:

RBI Notification

:rbi: India’s External Debt Reports

Table 1

  1. Multilateral loans- It is debt owed to multilateral financial institutions like ADB, IDA, IBRD and small portion to IFAD

  2. Bilateral Loans - It is debt owed to different governments like Japan, Russia, Germany, France, etc

  3. IMF - Debt owed to IMF is almost negligible. loans borrowed from IMF

  4. Trade Credit - Trade Credit may be raised from outside India in Indian Rupees by importers for import of capital or non-capital goods as permissible under the extant Foreign Trade Policy of the DGFT in accordance with the provisions contained in[ Schedule II]

  5. Commercial borrowings - Change in ECBs reflect local investment demand and availability of favourable external financing options.
    Reserve Bank of India - Master Directions

  6. NRI deposits - It is the single largest part of external debt. NRI deposits are in forms of NR(E) RA, NRO, FCNR(B) accounts

  7. Rupee loans - These loans have to be paid back in rupees and hence do not have foreign exchange risk for the borrower

  8. Short term debt -Debt issued with original maturity of less than one year

  9. Short term trade credit- It is credit extended for imports directly by the overseas supplier, bank and financial institution for original maturity of less than one year then it is referred to as ‘trade credit’ for imports. Depending on the source of finance, such trade credit will include suppliers’ credit or buyers’ credit.

Buyers’ credit and suppliers’ credit for three years and above come under the category of External Commercial Borrowings (ECB) which are governed by ECB guidelines issued vide and modified from time to time.

[ A. P. (DIR Series) Circular No. 60 dated January 31, 2004]
Reserve Bank of India - Notifications

Memo Items:

  1. Short term debt -Debt issued with original maturity of less than one year

  2. Long term debt- Debt issued with original maturity of more than a year

Related Topics

Introduction to India’s External Debt (End of March 2019)