India's external debt rose to $647B in 2023: World Bank
India's external debt saw a sharp rise of $31 billion in 2023, amounting to $646.79 billion, according to the World Bank's International Debt Statistics (IDS) report. The report also noted a significant increase in interest payments from $15.08 billion in 2022 to $22.54 billion in 2023. This represents an increase of nearly 50% in just a year.
Long-term debt stocks rise
The World Bank report also highlighted changes in India's long and short-term debt stocks. The country's long-term debt stocks rose 7% to $498 billion in 2023. Meanwhile, short-term debt stocks witnessed a slight decline to $126.32 billion during the same period. These changes suggest a move toward longer borrowing periods for the nation's external obligations.
A look at external debt in terms of exports
The World Bank's report also shed light on India's external debt in terms of its exports. In 2023, the external debt stock made up 80% of the country's total exports. Meanwhile, debt servicing made up 10% of total exports in the same year. These numbers highlight how much of an important role external borrowing plays in India's economy.
Net debt and equity inflows in 2023
The World Bank's IDS report also revealed India's net debt and equity inflows for 2023. The country saw net debt inflows of $33.42 billion during the period. Notably, net equity inflows were much higher at $46.94 billion in the same year, reflecting strong interest from foreign investors in India's market.
