The stock of external debt at end-March 2025 as well as revised data for earlier quarters are set out in Statements I (IMF format¹) and II (old format). The major developments relating to India’s external debt as at end-March 2025 are presented below.

Highlights

• At end-March 2025, India’s external debt was placed at US$ 736.3 billion, an increase of US$ 67.5 billion over its level at end-March 2024 (Table 1).
• The external debt to GDP ratio increased to 19.1 per cent at end-March 2025 from 18.5 per cent at end-March 2024.
• Valuation effect due to the appreciation of the US dollar vis-à-vis the Indian rupee and other currencies amounted to US$ 5.3 billion. Excluding the valuation effect, external debt would have increased by US$ 72.9 billion instead of US$ 67.5 billion at end-March 2025 over end-March 2024.
• At end-March 2025, long-term debt (with original maturity of above one year) was placed at US$ 601.9 billion, recording an increase of US$ 60.6 billion over its level at end-March 2024.
• The share of short-term debt (with original maturity of up to one year) in total external debt declined to 18.3 per cent at end-March 2025 from 19.1 per cent at end-March 2024. However, the ratio of short-term debt (original maturity) to foreign exchange reserves increased to 20.1 per cent at end-March 2025 (19.7 per cent at end-March 2024).
• 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 41.2 per cent of total external debt at end-March 2025 (43.4 per cent at end-March 2024) and stood at 45.4 per cent of foreign exchange reserves (44.9 per cent at end-March 2024) (Table 2).
• US dollar-denominated debt remained the largest component of India’s external debt, with a share of 54.2 per cent at end-March 2025, followed by debt denominated in the Indian rupee (31.1 per cent), yen (6.2 per cent), SDR² (4.6 per cent), and euro (3.2 per cent).
• Outstanding debt of both government and non-government sectors increased at end-March 2025 over the level a year ago (Table 3).
• The share of outstanding debt of non-financial corporations in total external debt was the highest at 35.5 per cent, followed by deposit-taking corporations (except the central bank) (27.5 per cent), general government (22.9 per cent) and other financial corporations (9.4 per cent).
• Loans remained the largest component of external debt, with a share of 34.0 per cent, followed by currency and deposits (22.8 per cent), trade credit and advances (17.8 per cent) and debt securities (17.7 per cent) (Table 4).
• Debt service (i.e., principal repayments and interest payments) marginally declined to 6.6 per cent of current receipts at end-March 2025 from 6.7 per cent at end-March 2024 (Table 5).

(Puneet Pancholy)  
Chief General Manager

Press Release: 2025-2026/614