India's external debt touches $762.8 billion

India's external debt stood at $762.8 billion at end-March 2026, an increase of $26.3 billion over its level at end-March 2025, according to data released by the Reserve Bank of India (RBI) on Monday.

The external debt to GDP ratio increased to 20.8 per cent at end-March 2026 from 19.8 per cent at end-March 2025.

Outstanding debt of the government decreased, while non-government debt increased at end-March 2026 over the level a year ago, according to an RBI statement.

Debt service, comprising principal repayments and interest payments, declined to 5.8 per cent of current receipts at end-March 2026 from 6.6 per cent at end-March 2025.

Valuation effect due to the appreciation of the US dollar vis-a-vis the Indian rupee and other major currencies amounted to $24.6 billion. Excluding the valuation effect, external debt would have increased by $51.0 billion instead of $ 26.3 billion at end-March 2026 over end-March 2025, the statement said.

At end-March 2026, long-term debt (with original maturity of above one year) was placed at $613.5 billion, recording an increase of $11.6 billion over its level at end-March 2025.

The share of short-term debt (with original maturity of up to one year) in total external debt increased to 19.6 per cent at end-March 2026 from 18.3 per cent at end-March 2025. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves increased to 21.6 per cent at end-March 2026 (20.1 per cent at end-March 2025).

Short-term debt on residual maturity basis (i.e., debt obligations that include long-term debt by original maturity falling due over the next twelve months and short-term debt by original maturity) constituted 42.9 per cent of total external debt at end-March 2026 (41.2 per cent at end-March 2025) and stood at 47.3 per cent of foreign exchange reserves (45.4 per cent at end-March 2025)

US dollar-denominated debt remained the largest component of India’s external debt, with a share of 55.5 per cent at end-March 2026, followed by debt denominated in the Indian rupee (29.4 per cent), yen (6.4 per cent), SDR (4.3 per cent), and euro (3.7 per cent).

The share of outstanding debt of non-financial corporations in total external debt was the highest at 36.4 per cent, followed by deposit-taking corporations (except the central bank) (26.5 per cent), general government (22.0 per cent) and other financial corporations (10.2 per cent).

Loans remained the largest component of external debt, with a share of 34.7 per cent, followed by currency and deposits (22.3 per cent), trade credit and advances (19.0 per cent) and debt securities (16.1 per cent), the statement added.