WASHINGTON: India’s external debt position has been going from bad to worse, according to. The world debt tables 1989-90 computed by the World Bank.
The World Bank has projected India’s total external debt in 1990 (excluding what is owed to the IMF) at 69. 783 billion dollars and in 1991 at 7 7.428 billion dollars, against + 62.348 billion dollars in 1989 and 54.94 billion dollars in 1988.
Long term debt is estimated to rise to 65.5 billion dollars in 1990and 71.8 7 billion dollars in 1991 as against 58.32 7 billion dollars in 1989.
Most of the long term debt is public and publicly guaranteed debt—5 6.80 7 billion dollars in 1989, 63.902 billion dollars in 1990 and 71.095 billion dollars in 1991.
The result is that the debt service ratio keeps worsening. In relation to exports of goods and services, the debt service ratio, which was 15 in 1984 and 22.9 in 1989, is estimated at 24 in 1989 and 2 68 in 1990.
The World Bank estimates this ratio to marginally go down to 2 63 percent in 1991.
Even that satisfaction is denied if the total is seen in relation to the gross national product. The ratio of the total external debt to gross national product was 15.3 in 1984. This rose to 20. 7 by 1988. The 1989 ratio is estimated at 24. 1990, the 1990 ratio at 2 6.8 and the 1991 ratio at 28.9.
Article extracted from this publication >> July 13, 1990
