India External Debt
India External Debt: Key Updates
Latest Release
🗓️ Q1, 2025
Gross External Debt – Q1 (2025-26)
$747.2 billion
Gross External Debt – Q4 (2024-25)
$735.9
Growth %
▲ +1.5% QoQ
External Debt Data Summary – Q1 2025
Total External Debt: India’s external debt stood at $747.2 billion in Q1 2025, rising from $735.9 billion in March 2025, marking a 1.5% quarter-on-quarter and 9.6% year-on-year increase, according to RBI data.
Debt-to-GDP Ratio: 18.9 %, slightly lower than 19.1 % in March 2025, reflecting moderate GDP growth and stable debt levels.
Long-term Debt: $611.7 billion (81.9 % of total), rising by $10.3 billion from March 2025 — indicating continued preference for long-maturity borrowing.
Short-term Debt: $135.4 billion (18.1 % of total), up only 0.7 % QoQ, showing a limited increase in near-term liabilities.
Sectoral Composition:
- Non-financial corporations hold the largest share (35.9 %), followed by deposit-taking corporations (27.4 %) and the general government (22.5 %).
- Government debt declined slightly (▼ $0.4 billion), while private sector borrowing and trade-related credit increased.
Instrument Composition:
- Loans (34.8 %) remain the largest component of India’s external debt.
- Currency & Deposits (23 %) and Trade Credit (17.7 %) also make up major portions, indicating the dominance of commercial borrowings and trade-linked financing.
Currency Composition:
- US Dollar: 53.8 % | Indian Rupee: 30.6 % | Yen: 6.6 % | SDR: 4.6 % | Euro: 3.5 %.
- The predominance of USD-denominated debt continues, though rupee-denominated liabilities have grown gradually.
Key Ratios & Indicators:
- Debt Service Ratio: 6.6 % (unchanged from March 2025).
- Forex Reserves / Debt: 93.4 % (▲ from 90.8 %), indicating stronger coverage.
- Short-term Debt / Reserves: 19.4 % (▼ from 20.1 %), showing improved liquidity position.
Analytical Insights:
- Corporate Borrowings Drive the Increase: The rise in India’s external debt during Q1 2025 was largely driven by higher borrowings from non-financial and deposit-taking corporations, reflecting robust external financing activity in the private sector.
- Stable Debt Servicing Capacity: The debt service ratio remained steady at 6.6%, indicating that India’s external obligations continue to be well-covered by export earnings and other current receipts.
- Improved External Vulnerability Indicators: The foreign exchange reserves-to-debt ratio strengthened to 93.4%, while short-term debt as a share of reserves declined to 19.4%, suggesting improved liquidity and reduced refinancing risk.
- Gradual Rise in Rupee-denominated Debt: The share of INR-denominated liabilities increased to 30.6%, reflecting deeper domestic participation and a gradual diversification away from foreign currency exposure.
- US Dollar Exposure Remains Significant: The US dollar continues to dominate India’s external debt composition (53.8%), maintaining currency risk sensitivity to global dollar movements and exchange rate fluctuations.
Also Check Other Data:
India External Debt: Historical Chart
India External Debt Chart – Historical & Quarterly Trends
External Debt Indicators: YoY (1990-2025)
External Debt Indicators: YoY
| Year | External Debt ($ Mn) | Debt Service Ratio (%) | Forex Reserves/Debt (%) | Debt-to-GDP Ratio (%) | Concessional Debt/Total (%) | Short-term Debt/Forex Reserves (%) | Short-term Debt/Total (%) |
|---|---|---|---|---|---|---|---|
| 2024–25 (P) | 7,36,343 | 6.6 | 90.8 | 19.1 | 6.9 | 20.1 | 18.3 |
| 2023–24 (PR) | 6,68,804 | 6.7 | 96.7 | 18.5 | 7.4 | 19.7 | 19.1 |
| 2022–23 (R) | 6,23,928 | 5.3 | 92.7 | 19.1 | 8.2 | 22.2 | 20.6 |
| 2021–22 | 6,19,076 | 5.2 | 98.1 | 20 | 8.3 | 20 | 19.7 |
| 2020–21 | 5,73,663 | 8.2 | 100.6 | 21.1 | 9 | 17.5 | 17.6 |
| 2019–20 | 5,58,437 | 6.5 | 85.6 | 20.9 | 8.8 | 22.4 | 19.1 |
| 2018–19 | 5,43,112 | 6.4 | 76 | 19.9 | 8.7 | 26.3 | 20 |
| 2017–18 | 5,29,290 | 7.5 | 80.2 | 20.1 | 9.1 | 24.1 | 19.3 |
| 2016–17 | 4,71,012 | 8.3 | 78.5 | 19.8 | 9.4 | 23.8 | 18.7 |
| 2015–16 | 4,84,791 | 8.8 | 74.3 | 23.4 | 9 | 23.2 | 17.2 |
| 2014–15 | 4,74,675 | 7.6 | 72 | 23.8 | 8.8 | 25 | 18 |
| 2013–14 | 4,46,178 | 5.9 | 68.2 | 23.9 | 10.4 | 30.1 | 20.5 |
| 2012–13 | 4,09,374 | 5.9 | 71.3 | 22.4 | 11.1 | 33.1 | 23.6 |
| 2011–12 | 3,60,766 | 6 | 81.6 | 21.1 | 13.3 | 26.6 | 21.7 |
| 2010–11 | 3,17,891 | 4.4 | 95.9 | 18.6 | 14.9 | 21.3 | 20.4 |
| 2009–10 | 2,60,935 | 5.8 | 106.9 | 18.5 | 16.8 | 18.8 | 20.1 |
| 2008–09 | 2,24,498 | 4.4 | 112.2 | 20.7 | 18.7 | 17.2 | 19.3 |
| 2007–08 | 2,24,407 | 4.8 | 138 | 18.3 | 19.7 | 14.8 | 20.4 |
| 2006–07 | 1,72,360 | 4.7 | 115.6 | 17.7 | 23 | 14.1 | 16.3 |
| 2005–06 | 1,39,114 | 10.1ᵈ | 109 | 17.1 | 28.4 | 12.9 | 14 |
| 2004–05 | 1,34,002 | 5.9ᶜ | 105.6 | 18.4 | 30.7 | 12.5 | 13.2 |
| 2003–04 | 1,12,653 | 16.1ᵇ | 100.3 | 17.7 | 35.8 | 3.9 | 3.9 |
| 2002–03 | 1,04,914 | 16.0ᵃ | 72.5 | 20 | 36.8 | 6.1 | 4.5 |
| 2001–02 | 98,843 | 13.7 | 54.7 | 20.8 | 35.9 | 5.1 | 2.8 |
| 2000–01 | 1,01,326 | 16.6 | 41.7 | 22.1 | 35.4 | 8.6 | 3.6 |
| 1999–00 | 98,263 | 17.1 | 38.7 | 22 | 38.9 | 10.3 | 4 |
| 1998–99 | 96,886 | 18.7 | 33.5 | 23.6 | 38.5 | 13.2 | 4.4 |
| 1997–98 | 93,531 | 19.5 | 31.4 | 24.3 | 39.5 | 17.2 | 5.4 |
| 1996–97 | 93,470 | 23 | 28.3 | 24.6 | 42.2 | 25.5 | 7.2 |
| 1995–96 | 93,730 | 26.2 | 23.1 | 26.6 | 44.7 | 23.2 | 5.4 |
| 1994–95 | 99,008 | 25.9 | 25.4 | 30.8 | 45.3 | 16.9 | 4.3 |
| 1993–94 | 92,695 | 25.4 | 20.8 | 33.8 | 44.4 | 18.8 | 3.9 |
| 1992–93 | 90,023 | 27.5 | 10.9 | 37.5 | 44.5 | 64.5 | 7 |
| 1991–92 | 85,285 | 30.2 | 10.8 | 38.7 | 44.8 | 76.7 | 8.3 |
| 1990–91 | 83,801 | 35.3 | 7 | 28.7 | 45.9 | 146.5 | 10.2 |
• R: Revised | PR: Partially Revised | P: Provisional
• ᵃ Excludes prepayment of US$ 3.4 billion.
• ᵇ Excludes prepayment of US$ 3.8 billion and redemption of Resurgent India Bonds (RIBs) worth US$ 5.5 billion.
• ᶜ Excludes prepayment of US$ 381 million.
• ᵈ Excludes repayments under India Millennium Deposits (IMDs) of US$ 7.1 billion and prepayment of US$ 23.5 million.
FAQs
External debt refers to the total amount India owes to foreign creditors — including governments, international institutions, and private lenders. It covers loans, trade credits, deposits, and bonds that are repayable in foreign currencies.
India raises external debt to bridge its current account deficit, finance infrastructure and development projects, and manage foreign exchange reserves. It also helps attract global capital and support long-term economic growth.
Yes. The data is compiled by the Reserve Bank of India (RBI) in coordination with the Ministry of Finance. It follows international reporting standards of the IMF and World Bank, ensuring accuracy and transparency. ChartForest sources all figures directly from these official releases.
External debt data helps evaluate India’s debt sustainability, track changes in foreign borrowing, and assess vulnerability to global financial shocks. It is widely used by economists, policymakers, and investors to understand India’s external position and currency stability.
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