New Delhi [India], September 30 (ANI): India’s external debt stood at USD 747.2 billion at the end of June 2025, marking an increase of USD 11.2 billion over the level recorded at end-March 2025, according to data released by the Reserve Bank of India (RBI) on Tuesday.
The data showed that the external debt-to-GDP ratio moderated slightly to 18.9 percent at end-June 2025 from 19.1 percent at end-March 2025. The rise in external debt includes a valuation loss of USD 5.1 billion due to the depreciation of the U.S. dollar against the Indian rupee and other major currencies such as the yen, euro, and Special Drawing Rights (SDR). Excluding this valuation effect, the increase in external debt would have been USD 6.2 billion.
Long-term debt rose to USD 611.7 billion, up by USD 10.3 billion over the previous quarter. In contrast, the share of short-term debt (original maturity up to one year) declined to 18.1 percent of total external debt, from 18.3 percent at end-March 2025.
The data highlighted that short-term debt, on a residual maturity basis, constituted 40.7 percent of total external debt and 43.6 percent of foreign exchange reserves, both slightly lower than the previous quarter’s levels.
U.S. dollar-denominated debt remained the largest component at 53.8 percent, followed by Indian rupee-denominated debt (30.6 percent), yen (6.6 percent), SDR (4.6 percent), and euro (3.5 percent).
While the general government’s outstanding external debt decreased, the non-government sector’s debt increased. Non-financial corporations held the largest share at 35.9 percent, followed by deposit-taking corporations excluding the central bank (27.4 percent), general government (22.5 percent), and other financial corporations (9.5 percent).
Loans remained the largest component of external debt at 34.8 percent, followed by currency and deposits (23.0 percent), trade credit and advances (17.7 percent), and debt securities (16.8 percent).
Debt service stood at 6.6 percent of current receipts, unchanged from the previous quarter, the RBI data showed. (ANI)
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