India's external debt rises to USD 747.2 bn at Jun-end: RBI data

Mumbai | India's external debt stood at USD 747.2 billion at the end of June 2025, an increase of USD 11.2 billion over its level at March-end 2025, according to the Reserve Bank data released on Tuesday.

The external debt to GDP ratio moderated to 18.9 per cent at the end of June 2025 from 19.1 per cent at the end of March 2025.

It said that valuation loss due to the depreciation of the US dollar vis-a-vis the Indian rupee and other major currencies such as yen, the euro and SDR amounted to USD 5.1 billion.

Excluding the valuation effect, external debt would have increased by USD 6.2 billion instead of USD 11.2 billion at the end of June 2025 over March-end 2025.

Releasing 'India’s External Debt as at the end of June 2025' data, the RBI said that at the end of June 2025, long-term debt (with original maturity of above one year) was USD 611.7 billion, recording an increase of USD 10.3 billion over its level at March-end 2025.

The share of short-term debt (with original maturity of up to one year) in total external debt declined to 18.1 per cent at June-end 2025 from 18.3 per cent a quarter ago.

Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves decreased to 19.4 per cent at the end of June 2025 against 20.1 per cent at the end of March 2025.

US dollar-denominated debt remained the largest component of India's external debt, with a share of 53.8 per cent at June-end 2025, followed by debt denominated in the Indian rupee (30.6 per cent), yen (6.6 per cent), SDR (4.6 per cent), and euro (3.5 per cent).

The RBI said outstanding debt of the general government decreased, while non-government debt increased at the end of June 2025 over March-end 2025.

The share of outstanding debt of non-financial corporations in total external debt was the highest at 35.9 per cent, followed by deposit-taking corporations (except the central bank), general government and other financial corporations.

Loans remained the largest component of external debt, with a share of 34.8 per cent, followed by currency and deposits (23 per cent), trade credit and advances (17.7 per cent) and debt securities (16.8 per cent).

Debt service (principal repayments and interest payments) stood at 6.6 per cent of current receipts at June-end 2025, the same as March-end 2025.