MUMBAI, India, June 30 (ANI) — India’s external debt rose to $762.8 billion at the end of March 2026, driven primarily by increased borrowing by the private sector, while the general government’s outstanding external debt declined, according to data released Tuesday by the Reserve Bank of India (RBI).
The RBI said India’s external debt increased by $26.3 billion compared with the end of March 2025.
According to the central bank, the outstanding debt of the general government decreased during the year, while non-government debt increased, indicating that the rise in external borrowing was led by corporations, banks, and other financial institutions.
“Outstanding debt of the general government decreased, while non-government debt increased at end-March 2026 over the level a year ago,” the RBI said.
Non-financial corporations accounted for the largest share of India’s external debt at 36.4% as of the end of March 2026.
Deposit-taking corporations, excluding the central bank, accounted for 26.5% of total external debt, followed by the general government at 22.0% and other financial corporations at 10.2%.
The RBI also reported that India’s external debt-to-GDP ratio increased to 20.8% at the end of March 2026, up from 19.8% a year earlier.
The central bank noted that valuation effects resulting from the appreciation of the U.S. dollar against the Indian rupee and other major currencies amounted to $24.6 billion.
Excluding these valuation effects, India’s external debt would have increased by $51.0 billion during the year instead of the reported $26.3 billion.
Long-term external debt, defined as debt with an original maturity of more than one year, stood at $613.5 billion at the end of March 2026, an increase of $11.6 billion from the previous year.
Meanwhile, the share of short-term debt in total external debt rose to 19.6% from 18.3% a year earlier. The ratio of short-term debt to foreign exchange reserves also increased to 21.6% from 20.1%.
Debt denominated in U.S. dollars remained the largest component of India’s external debt, accounting for 55.5% of the total.
This was followed by debt denominated in Indian rupees at 29.4%, Japanese yen at 6.4%, Special Drawing Rights (SDRs) at 4.3%, and the euro at 3.7%.
By instrument, loans remained the largest component of external debt, accounting for 34.7% of the total, followed by currency and deposits at 22.3%, trade credit and advances at 19.0%, and debt securities at 16.1%.
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