India’s External Debt as at the end of June 2025

The RBI has released data on India’s External Debt as at the end of June 2025.

Highlights

• At end-June 2025, India’s external debt was placed at US$ 747.2 billion, an increase of US$ 11.2 billion over its level at end-March 2025.
• The external debt to GDP ratio moderated to 18.9 per cent at end-June 2025 from 19.1 per cent at end-March 2025.
• Valuation loss due to the depreciation of the US dollar vis-à-vis the Indian rupee and other major currencies such as yen, the euro and SDR amounted to US$ 5.1 billion. Excluding the valuation effect, external debt would have increased by US$ 6.2 billion instead of US$ 11.2 billion at end-June 2025 over end-March 2025.
• At end-June 2025, long-term debt (with original maturity of above one year) was placed at US$ 611.7 billion, recording an increase of US$ 10.3 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 declined to 18.1 per cent at end-June 2025 from 18.3 per cent at end-March 2025. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves decreased to 19.4 per cent at end-June 2025 (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 40.7 per cent of total external debt at end-June 2025 (41.3 per cent at end-March 2025) and stood at 43.6 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 53.8 per cent at end-June 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).
• Outstanding debt of the general government decreased, while non-government debt increased at end-June 2025 over end-March 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) (27.4 per cent), general government (22.5 per cent) and other financial corporations (9.5 per cent).
• Loans remained the largest component of external debt, with a share of 34.8 per cent, followed by currency and deposits (23.0 per cent), trade credit and advances (17.7 per cent) and debt securities (16.8 per cent).
• Debt service (i.e., principal repayments and interest payments) stood at 6.6 per cent of current receipts at end-June 2025, same as end-March 2025.