Reserve Bank of India (RBI), stated in a latest update today that at end-March 2026, India’s external debt was placed at US$ 762.8 billion, an increase of US$ 26.3 billion over its level at end-March 2025. The external debt to GDP ratio increased to 20.8 per cent at end-March 2026 from 19.8 per cent at end-March 2025. Valuation effect due to the appreciation of the US dollar vis-à-vis the Indian rupee and other major currencies amounted to US$ 24.6 billion. Excluding the valuation effect, external debt would have increased by US$ 51.0 billion instead of US$ 26.3 billion at end-March 2026 over end-March 2025.

At end-March 2026, long-term debt (with original maturity of above one year) was placed at US$ 613.5 billion, recording an increase of US$ 11.6 billion over its level at end-March 2025. The share of short-term debt (with original maturity of up to one year) in total external debt increased to 19.6 per cent at end-March 2026 from 18.3 per cent at end-March 2025. Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves increased to 21.6 per cent at end-March 2026 (20.1 per cent at end-March 2025).

Short-term debt on residual maturity basis constituted 42.9 per cent of total external debt at end-March 2026 (41.2 per cent at end-March 2025) and stood at 47.3 per cent of foreign exchange reserves (45.4 per cent at end-March 2025). US dollar-denominated debt remained the largest component of India’s external debt, with a share of 55.5 per cent at end-March 2026, followed by debt denominated in the Indian rupee (29.4 per cent), yen (6.4 per cent), SDR2 (4.3 per cent), and euro (3.7 per cent).

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