Sustainable external debt | The Financial Express*

Clipped from: https://www.financialexpress.com/opinion/sustainable-external-debt/2928507/

The country’s short-term debt, as a percentage of its total reserves, stands at 17.5%—as compared to 36.8% for China and 50.5% for South Africa.

Sustainable external debtSustainable external debt (File)

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At a time when rising interest rates and slowing global growth risk are tipping a large number of poor and middle income countries into debt crises, India’s external debt position remains sustainable. The country’s short-term debt, as a percentage of its total reserves, stands at 17.5%—as compared to 36.8% for China and 50.5% for South Africa. Similarly, India’s external debt stock as a percentage of gross national income is 21.4%, as compared with 51.8% for South Africa, indicating that India’s external vulnerabilities are within its comfort zone.

First published on: 28-12-2022 at 03:15:00 am

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