India’s external debt stood at US$ 762.8 billion at end-March 2026, according to provisional data released by the Reserve Bank of India. The figure was higher by US$ 26.3 billion compared with end-March 2025, when the outstanding external debt was US$ 736.4 billion.
The external debt-to-GDP ratio also rose during the year. It increased to 20.8 per cent at end-March 2026 from 19.8 per cent at end-March 2025. The RBI said the data for 2026 are provisional, while some earlier figures have been revised or partially revised.
Dollar movement affected the headline increase
The RBI pointed to a valuation effect caused by the appreciation of the US dollar against the Indian rupee and other major currencies. This valuation effect was estimated at US$ 24.6 billion.
Because external debt is reported in US dollars, currency movements can change the dollar value of debt even when the underlying borrowings do not change by the same amount. The RBI said that without this valuation effect, India’s external debt would have increased by US$ 51.0 billion over end-March 2025, instead of the reported increase of US$ 26.3 billion.
Long-term debt remained the larger share
Long-term external debt, defined as debt with an original maturity of more than one year, was placed at US$ 613.5 billion at end-March 2026. This was an increase of US$ 11.6 billion from end-March 2025.
Short-term debt by original maturity, which covers obligations of up to one year, stood at US$ 149.2 billion. Its share in total external debt rose to 19.6 per cent from 18.3 per cent a year earlier. The ratio of short-term debt by original maturity to foreign exchange reserves also increased, moving to 21.6 per cent from 20.1 per cent.
On a residual maturity basis, short-term debt includes obligations due within the next 12 months, including the current portion of long-term debt. On this basis, short-term debt made up 42.9 per cent of total external debt at end-March 2026, compared with 41.2 per cent at end-March 2025. It was equal to 47.3 per cent of foreign exchange reserves, up from 45.4 per cent a year earlier.
Currency and borrower profile
US dollar-denominated debt remained the largest part of India’s external debt. It accounted for 55.5 per cent of the total at end-March 2026. Rupee-denominated debt followed with a share of 29.4 per cent. Debt denominated in yen had a 6.4 per cent share, Special Drawing Rights accounted for 4.3 per cent, and euro-denominated debt made up 3.7 per cent.
The RBI data showed a small decline in outstanding general government external debt over the previous year, while non-government debt increased. General government debt was US$ 167.5 billion at end-March 2026, compared with US$ 168.4 billion at end-March 2025. Non-government debt rose to US$ 595.3 billion from US$ 568.0 billion.
Among borrower categories, non-financial corporations had the largest share of total external debt at 36.4 per cent. Deposit-taking corporations, excluding the central bank, accounted for 26.5 per cent. General government accounted for 22.0 per cent, while other financial corporations had a share of 10.2 per cent.
Loans were the largest instrument
By instrument, loans remained the biggest component of external debt. They stood at US$ 264.9 billion and accounted for 34.7 per cent of the total. Currency and deposits were at US$ 170.4 billion, with a share of 22.3 per cent.
Trade credit and advances rose to US$ 144.9 billion and formed 19.0 per cent of total external debt. Debt securities stood at US$ 123.0 billion, accounting for 16.1 per cent. Direct investment through intercompany lending was US$ 37.2 billion, while Special Drawing Rights allocations were US$ 22.4 billion.
Debt service ratio declined
The debt service ratio, which measures principal repayments and interest payments as a share of current receipts, declined to 5.8 per cent at end-March 2026. It was 6.6 per cent at end-March 2025.
The RBI’s key indicators also showed that the ratio of foreign exchange reserves to total external debt was 90.6 per cent at end-March 2026, compared with 90.8 per cent a year earlier. The ratio of concessional debt to total debt was 6.7 per cent, down from 6.9 per cent at end-March 2025.
The latest release was issued under Press Release 2026-2027/563 and signed by Brij Raj, Chief General Manager. The figures may not add up exactly in some categories because of rounding.
Source: Reserve Bank of India Press Releases.
