What is External Debt?  

• External debt is the portion of a country’s debt that is borrowed from foreign lenders through commercial banks, governments, or international financial institutions.  Governments and eligible corporations can raise loans from abroad.

Components of External Debt  

• India’s external debt includes
  • Commercial Borrowings,
  • Sovereign Borrowings,
  • Non-Resident Deposits,
  • Trade credits.

Why in News?

• India’s external debt grew by 8.2 per cent to over 620 billion US dollar at the end of March this year.

Reference:

1. https://newsonair.gov.in/News?title=India%e2%80%99s-external-debt-rises-by-8.2-pc-to-over-USD-620-bn-till-Mar-2022&id=447169