SDG 8: Decent Work & Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Reserve Bank of India | Ministry of Finance
India’s external debt reached US$ 747.2 billion at end-June 2025, an increase of US$ 11.2 billion from March 2025. Despite the rise, the external debt-to-GDP ratio moderated to 18.9% from 19.1%, supported by robust economic growth.
Out of India’s total external debt of US$ 747.2 billion, most was long-term (US$ 611.7 billion). If we look only at debt originally due within a year, that made up 18.1% of the total. But if we also count the part of long-term debt that is coming due in the next twelve months, then the share of obligations maturing within a year is much larger - about 40.7% of the total.
Loans (34.8%), currency and deposits (23.0%), trade credit (17.7%), and debt securities (16.8%) made up the bulk of the stock.
What is External Debt? → The portion of a country’s total debt that is owed to non-residents and repayable in foreign currency, goods, or services. It reflects India’s financial obligations to the world and is a key indicator of vulnerability to global shocks.
How External Debt Connects to IIP → The International Investment Position (IIP) captures the stock of India’s external assets and liabilities. Within this, external debt is the debt portion of liabilities. In June 2025, debt made up 54.5% of total external liabilities. Taken together, the IIP (assets vs liabilities) and the External Debt release (debt details) provide a complete view of India’s external vulnerability.
Follow the full report here: RBI Press Release on India’s External Debt, June 2025