India's External Debt Reaches $762.8 Billion, Ratio to GDP Up

India's external debt reached US$ 762.8 billion at end-March 2026, an increase of US$ 26.3 billion from the previous year.

This figure was significantly impacted by a US$ 24.6 billion valuation effect, stemming from the US dollar's appreciation against the Indian rupee and other major currencies.

Without this valuation effect, the debt would have seen a larger increase of US$ 51.0 billion.

Long-term debt, defined by an original maturity of over one year, stood at US$ 613.5 billion, rising by US$ 11.6 billion.

Conversely, the share of short-term debt, with an original maturity of up to one year, grew to 19.6 percent of the total external debt, up from 18.3 percent.

The debt to GDP ratio also increased to 20.8 percent from 19.8 percent.

US dollar-denominated debt continued to be the largest component, representing 55.5 percent of the total.

The ratio of short-term debt (original maturity) to foreign exchange reserves increased to 21.6 percent at end-March 2026, up from 20.1 percent.

On a residual maturity basis, short-term debt constituted 42.9 percent of total external debt and 47.3 percent of foreign exchange reserves, both higher than the previous year.

General government debt decreased, while non-government debt increased.

Non-financial corporations held the largest share of outstanding debt at 36.4 percent.

Loans remained the largest instrument component of external debt, accounting for 34.7 percent.

The debt service ratio improved, declining to 5.8 percent of current receipts from 6.6 percent at end-March 2025.