India's external debt ratio has increased significantly in the last year as compared to the previous year. Various countries of the world are trying to reduce it when they are experiencing a major crisis due to the debt crisis. At this stage, the data on India's credit report has been released. This has come as a warning to India. India's external debt ratio increased by 8.2% to $620.7 billion from $573.7 billion in the previous fiscal year (March 2021), according to a report by the Department of Economic Affairs, Ministry of Finance.
However, the debt to GDP ratio, which was 21.2% at the end of march 2021, decreased to 19.9% in march 2022. At the same foreign exchange reserve ratio, the external debt, which was 100.6% in the previous year, decreased to 97.85% in march 2022. Meanwhile, India's long-term debt stands at $499.1 billion, accounting for 80.4% of total debt. The same short-term debt stands at $121.7 billion. It accounts for a 19.6% share.The bulk of the total external debt is commercial debt. It is almost 90%. 
In particular, the country's sovereign debt ratio increased by 17.1% to $130.7 billion. The same non-sovereign debt ratio increased by 6.1% from march 2021 to $490 billion.
This is mostly a business loan. Apart from this it also includes nri deposits and short-term loans. nri deposits declined by 2% to $139 billion. The corresponding commercial credit ratio increased to $209.71 billion and short-term commercial credit increased to $117.4 billion.
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