India's Growing External Debt: A Financial Snapshot

India's external debt rose by 4.3% to USD 711.8 billion by September 2024. The debt to GDP ratio increased to 19.4%, with the US dollar-denominated debt comprising the largest share. Loans were the primary component of the debt. Debt service reached 6.7% of current receipts.

India's external debt has witnessed a significant rise, reaching USD 711.8 billion by the end of September 2024, marking a 4.3% increase from June 2024, according to the Finance Ministry data.

By September 2023, the debt was USD 637.1 billion, showing a sustainable upward trend. In just a year, an increase of USD 29.6 billion was recorded, highlighting a critical fiscal situation as outlined in India's Quarterly External Debt Report.

The debt-to-GDP ratio climbed to 19.4% in September 2024 from 18.8% in June, with the US dollar-denominated debt at the forefront. Loans remained the largest debt component, demanding keen monitoring by fiscal authorities in the face of rising debt service.