India's external debt reached USD 717.9 billion by December 2024, up 10.7% from the previous year, according to the Finance Ministry. The rise is partly due to US dollar appreciation. Non-government sectors, especially non-financial corporations, saw significant increases in debt. The debt servicing ratio slightly decreased to 6.6% from 6.7% in September 2024.
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FSSAI has instructed Patanjali Foods to recall a batch of red chilli powder for regulatory non-compliance regarding contaminants and toxins. Despite this, Patanjali Foods reported a 21% rise in net profit for the September quarter and is planning to establish an oil palm mill in Mizoram.
The RBI will continue its currency market intervention strategy to manage excessive volatility and maintain macro-economic stability. The rupee hit a new low of 86.63 against the dollar amid speculation about a more flexible approach. Active interventions have used significant foreign exchange reserves since September to defend the Indian currency.
India's forex reserves have fallen for six consecutive weeks, hitting a 10-month low of $625.87 billion due to the RBI's intervention to stabilize the rupee. Despite this, reserves are still sufficient to cover over 11 months of imports, with the RBI actively ensuring market stability.
The US economy grew by 2.4% in the last quarter of 2024, mainly due to strong consumer spending. However, business investment and inventories saw a decline. Inflationary pressures increased, and the outlook for 2025 is uncertain due to tariffs and trade policies under President Donald Trump. Consumer confidence has dropped, potentially impacting future growth.
The Reserve Bank of India has reallocated the responsibilities of its deputy governors following the end of Deputy Governor Michael Debabrata Patra's extended term. M Rajeshwar Rao will now handle the monetary policy department among other key departments, while T Rabi Sankar and Swaminathan Janakiraman are assigned to various departments as part of the reshuffle.
In Davos, young demonstrators protest against the World Economic Forum, highlighting the disparity between the rich and the global issues they face. Meanwhile, young Global Shapers engage in discussions with world leaders, aiming to influence decisions on social justice, climate change, and political representation for the youth.
Bank loans continue to show no stress at the macro level, remaining well below the long-term trend as a percentage of GDP. By Dec 2024, the growth in overall bank credit slowed to 7.7% due to higher lending rates and increased capital requirements. Asset quality has improved with the GNPA ratio dropping to a 12-year low of 2.6%.
IDBI Bank reported a 31% year-on-year increase in net profit to ₹1,908 crore for Q3 FY25 due to reduced provisioning and higher interest income. The gross NPA ratio improved to 3.57%, and net NPA ratio fell to 0.18%. Total income rose to ₹8,565 crore.
India's tariff structure has been rationalised, reducing the average customs rate from 11.65% to 10.66%, aligning it more closely with ASEAN countries. This move aims to enhance the competitiveness of Indian industry and improve the perception of India’s tariffs globally. Efforts to simplify GST rates are ongoing with a focus on consensus building.
The Reserve Bank of India (RBI) has updated the fee structure for transactions at ATMs and Cash Recycler Machines, increasing the charges by Rs 2. Effective from May 1, 2025, customers will have a limit of five free transactions at their own bank's ATMs and additional limited free transactions at other bank ATMs based on location.