Indian Economy News

India debt-GDP ratio one of the lowest among emerging markets: Moody's

Mumbai: At 23% in 2015, India had one of the lowest foreign debt-to-GDP ratios among 83 emerging market countries, although it has risen from 17% in 2005 to the current level. Also, among the Asian countries covered in an analysis by global ratings major Moody's Investors Service, compared to an average Debt-to-GDP ratio of 47%, India's is less than half that number.

According to the report, India experienced the second largest increase in external debt between 2010 and 2015. "India had $474 billion in external debt as of 2015, representing 16% of the Asia Pacific region's total debt. India's external debt has grown two to three times slower than China, at a five-year annual average rate of 8.4% and a ten-year annual average rate of 13.4%. As a result, the external debt-to-GDP ratio in India has risen from 17% in 2005 to 23% in 2015, but is still one of the lowest globally," it noted.

The analysis also found that BRICS block owns 37% of all emerging market external debt. In dollar terms, as of end-2015, China represented 17% of total emerging market external debt, Brazil 8%, Russia 6%, and India another 6%.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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