NEW DELHI: Oil isn’t the one headache for India as the rupee slides.
Add external debt to the checklist. With the currency dropping more than 11 according to cent to the dollar this yr, the rustic should shell out an additional Rs 68,500 crore when repaying temporary debt in the coming months, in line with numbers arrived at via the State Bank of India (SBI).
The rupee fell past 72 according to dollar to a document low on Thursday, amid a deepening rising market contagion and the risk of a much wider current-account deficit. If the rupee averages 73 to a dollar this yr and crude oil, India’s biggest import, averages $76 a barrel for the rest part of 2018, that might see the rustic’s oil invoice rise via Rs 45,700 crore, Soumya Kanti Ghosh, chief economic adviser at the SBI, wrote in a word Thursday.
India’s temporary debt obligations, which incorporated non-resident deposits as well as in a foreign country industrial borrowings via companies, totaled $217.6 billion in 2017. Assuming 50 according to cent has either been paid in the first part of 2018 or was once rolled over to next yr, the rest quantity to be repaid in rupees would be Rs 7.1 lakh crore computed using the average trade charge of 65.1 according to dollar in 2017.
“For the second one part of the yr, assuming that rupee depreciates to an average worth of 71.4 according to dollar, the debt repayment quantity would be Rs 7.eight lakh crore,” he wrote. That would implying an additional value of nearly Rs 70,000 crore.
Add external debt to the checklist. With the currency dropping more than 11 according to cent to the dollar this yr, the rustic should shell out an additional Rs 68,500 crore when repaying temporary debt in the coming months, in line with numbers arrived at via the State Bank of India (SBI).
The rupee fell past 72 according to dollar to a document low on Thursday, amid a deepening rising market contagion and the risk of a much wider current-account deficit. If the rupee averages 73 to a dollar this yr and crude oil, India’s biggest import, averages $76 a barrel for the rest part of 2018, that might see the rustic’s oil invoice rise via Rs 45,700 crore, Soumya Kanti Ghosh, chief economic adviser at the SBI, wrote in a word Thursday.
India’s temporary debt obligations, which incorporated non-resident deposits as well as in a foreign country industrial borrowings via companies, totaled $217.6 billion in 2017. Assuming 50 according to cent has either been paid in the first part of 2018 or was once rolled over to next yr, the rest quantity to be repaid in rupees would be Rs 7.1 lakh crore computed using the average trade charge of 65.1 according to dollar in 2017.
“For the second one part of the yr, assuming that rupee depreciates to an average worth of 71.4 according to dollar, the debt repayment quantity would be Rs 7.eight lakh crore,” he wrote. That would implying an additional value of nearly Rs 70,000 crore.
Weak rupee to cost India an extra Rs 68,500 crore more to repay foreign debt
![Weak rupee to cost India an extra Rs 68,500 crore more to repay foreign debt]()
Reviewed by Kailash
on
September 07, 2018
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