External Debt To GDP Ratio:
The external debt to GDP ratio declined to 18.7% at the end of March 2024 from 19.0% at the end of March 2023.
- India’s external debt reached $663.8 billion by the end of March 2024, marking a 6% increase (approximately $39.7 billion) compared to March 2023.
- The external debt-to-GDP ratio is a crucial economic metric that compares a country’s external debt to its gross domestic product (GDP).
- External debt refers to the total amount of money a country owes to external creditors, including foreign governments, international organizations, and private entities outside the country.
- It includes both short-term and long-term debt obligations.
- External debt is a type of public debt. Public debt refers to the total amount of money that a government owes to external creditors and domestic lenders.
- GDP represents the total value of all goods and services produced within a country’s borders during a specific period (usually a year).
- It reflects the economic output and productivity of a nation.
- The external debt-to-GDP ratio is calculated by dividing the total external debt by the country’s gross domestic product (GDP).
