MUMBAI — India’s external debt increased to $762.8 billion at the end of March 2026, up $26.3 billion from a year earlier, according to data released Monday by the Reserve Bank of India.
The country’s external debt-to-GDP ratio rose to 20.8 percent from 19.8 percent at the end of March 2025.
Government debt declined during the year, while non-government debt increased, the RBI said.
Debt service payments, which include principal and interest payments, declined to 5.8 percent of current receipts from 6.6 percent a year earlier.
The RBI said currency valuation changes reduced the reported increase in external debt. The appreciation of the U.S. dollar against the Indian rupee and other major currencies resulted in a valuation effect of $24.6 billion.
Excluding that effect, India’s external debt would have risen by $51 billion instead of $26.3 billion during the year.
Long-term debt, defined as debt with an original maturity of more than one year, increased by $11.6 billion to $613.5 billion at the end of March.
The share of short-term debt in total external debt rose to 19.6 percent from 18.3 percent. Short-term debt represented 21.6 percent of India’s foreign exchange reserves, compared with 20.1 percent a year earlier.
On a residual maturity basis, which includes long-term debt due within the next 12 months, short-term obligations accounted for 42.9 percent of total external debt, up from 41.2 percent. They were equivalent to 47.3 percent of foreign exchange reserves, compared with 45.4 percent a year earlier.
U.S. dollar-denominated debt remained the largest component, accounting for 55.5 percent of the total. Rupee-denominated debt represented 29.4 percent, followed by yen at 6.4 percent, special drawing rights at 4.3 percent and the euro at 3.7 percent.
Non-financial corporations held the largest share of India’s external debt at 36.4 percent. Deposit-taking corporations excluding the central bank accounted for 26.5 percent, while the general government held 22 percent and other financial corporations accounted for 10.2 percent.
Loans remained the largest debt category at 34.7 percent, followed by currency and deposits at 22.3 percent, trade credit and advances at 19 percent and debt securities at 16.1 percent. (Source: IANS)
