India’s external debt reached $762.8 billion by the end of March 2026, marking a $26.3 billion increase from the previous year, as per data from the Reserve Bank of India. The external debt to GDP ratio also rose to 20.8% in 2026 from 19.8% in 2025.
The government’s outstanding debt decreased, while non-government debt saw an increase in 2026 compared to the previous year, according to the RBI. Debt service, including principal repayments and interest payments, declined to 5.8% of current receipts in 2026 from 6.6% in 2025.
Valuation effect due to the US dollar’s appreciation against the Indian rupee and other major currencies amounted to $24.6 billion. Excluding this effect, the external debt would have increased by $51.0 billion in 2026 over 2025, as stated by the RBI.
At the end of March 2026, long-term debt stood at $613.5 billion, showing an $11.6 billion increase from the previous year. Short-term debt’s share in total external debt rose to 19.6% in 2026 from 18.3% in 2025. Additionally, the ratio of short-term debt to foreign exchange reserves also increased to 21.6% in 2026.
US dollar-denominated debt remained the largest component of India’s external debt at 55.5% in 2026, followed by debt denominated in the Indian rupee (29.4%), yen (6.4%), SDR (4.3%), and euro (3.7%). The highest share of outstanding debt was held by non-financial corporations at 36.4%, followed by deposit-taking corporations (26.5%), general government (22.0%), and other financial corporations (10.2%).
Loans continued to be the largest component of external debt at 34.7%, followed by currency and deposits (22.3%), trade credit and advances (19.0%), and debt securities (16.1%).
