Mumbai, Jul 1 (IANS): India's external debt for the quarter ended March 2021 increased on a year-on-year basis, official data showed on Wednesday.

The external debt during the period under review rose to $570 billion from $558.4 billion reported for the quarter ended March 2020.

"The external debt to GDP ratio increased to 21.1 per cent at end-March 2021 from 20.6 per cent at end-March 2020," the RBI said in a statement.

"Valuation loss due to the depreciation of the US dollar vis-a-vis Indian rupee and major currencies such as euro, SDR2 and pound sterling was placed at $6.8 billion. Excluding the valuation effect, the increase in external debt would have been $4.7 billion instead of $11.5 billion at end-March 2021 over end- March 2020."

According to the RBI, commercial borrowings remained the largest component of external debt, with a share of 37.4 per cent, followed by non-resident deposits (24.9 per cent) and short-term trade credit (17.1 per cent).

Besides, debt service (principal repayments plus interest payments) increased to 8.2 per cent of current receipts at end-March 2021 as compared with 6.5 per cent at end-March 2020, reflecting higher repayments and lower current receipts.