India's Rising External Debt: A 10.7% Surge in 2024

India's external debt rose by 10.7% to USD 717.9 billion by December 2024. The debt to GDP ratio reached 19.1%. The valuation effect, mainly due to US dollar appreciation, was USD 12.7 billion. Loans comprised the largest debt component, with increasing debt in the non-government sector.

India's external debt experienced a significant increase of 10.7% in 2024, reaching USD 717.9 billion by the end of December. This rise highlights growing financial obligations as reported by the finance ministry.

The external debt to GDP ratio marginally climbed to 19.1% from 19% noted in September 2024. The valuation effect primarily stems from the US dollar's appreciation against the rupee and other global currencies, amounting to USD 12.7 billion during this quarter.

With the bulk of external debt denominated in US dollars, various sectors witnessed changes. The government's outstanding debt decreased, while that of the non-government sector rose. Loans emerged as the leading component, underscoring key areas of fiscal dependency.

(With inputs from agencies.)