Rising Trends: A Closer Look at India's External Debt in 2025

India's external debt reached USD 747.2 billion by June 2025, a USD 11.2 billion increase since March. The debt to GDP ratio slightly decreased, and valuation losses amounted to USD 5.1 billion due to currency fluctuations. Long-term debt rose, while short-term debt and government outstanding debt saw declines.

India's external debt has surged to USD 747.2 billion by June 2025, marking an increase of USD 11.2 billion since March 2025. Data from the Reserve Bank reveals that the external debt to GDP ratio saw a slight reduction, moving from 19.1% in March to 18.9% by June.

The valuation loss attributed to the depreciation of the US dollar against the Indian rupee and other currencies like the yen, euro, and SDR was estimated at USD 5.1 billion. Excluding this valuation effect, the growth in external debt would be USD 6.2 billion instead.

Long-term debt recorded a rise to USD 611.7 billion, while short-term debt and government debt showed notable decreases. The US dollar remains the predominant currency in this debt, comprising 53.8% of the total, while loans continue to be the largest debt component at 34.8%.