Debt status in India

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Debt status Report of Government of India 

Salient features of Central Government Debt are as under:

i. Central Government Debt stood at 45.7 per cent of GDP at end-March 2019, witnessing a marginal
decline from 45.8 per cent at end-March 2018.


ii. General Government Debt (GGD)-GDP ratio worked out to 68.6 per cent at end-March 2019, slightlylower compared to 68.7 per cent at end-March 2018.


iii. 94.1 per cent of total Central Government debt at end-March 2019 was domestic debt. Sovereign
external debt constituted 2.7 per cent of GDP at end-March 2019, implying low currency risk to GoI
debt portfolio. The sovereign external debt is entirely from official sources, providing safety fromvolatility in the international capital markets.

iv. The share of marketable securities in internal debt stood at 84.4 per cent at end-March 2019, slightlylower than 86.1 per cent at end-March 2018.


v. Public debt in India is primarily contracted at fixed interest rates, with floating internal debt
constituting 0.9 per cent of GDP at end-March 2019, thereby insulating debt portfolio from interestrate volatility and providing stability to interest payments securities at end-March 2019 was 10.4 years with the tenure of the longest security being 37 years.

Vi The Government continued its efforts to elongate the maturity profile of its debt portfolio with aview to reduce the roll-over risk. The weighted average residual maturity of outstanding datedsecurities at end-March 2019 was 10.4 years with the tenure of the longest security being 37 years.At end-March 2019, 28.27 per cent of outstanding stock of dated government securities had aresidual maturity of up to 5 years, indicating a relatively lower roll-over risk in the medium-term,which is further supported by active debt management operations in the form of switches/conversions.



vii. Ownership pattern of dated securities indicates a gradual broadening of market over time.Commercial banks remain the dominant holders even as their share declined from 43.9 per cent atend-March 2013 to 40.3 per cent at end-March 2019. Insurance Companies and Provident Fundsaccounted for 24.3 per cent and 5.5 per cent, respectively, of outstanding stock of dated securities;creating stable demand for long-term securities.




viii.IP-RR ratio (interest payments to revenue receipts) of the Centre was 37.5 per cent in 2018-19 ascompared to 35.6 per cent in 2012-13. Average Interest Cost (AIC) of the Centre remained unchangedat 7.1 per cent for the same period. The IP- RR ratio and AIC for States at end-March 2019 stood at11.2 per cent and 7.0 per cent, respectively. AIC is observed to be well below the nominal GDPgrowth rate, indicating that India is comfortably placed in terms of debt sustainability parameters.







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