India’s External Debt Status and Trends Report 2024-25: Composition, Risks, and Fiscal Implications

SDG 8: Decent Work and Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Ministry of Finance | Reserve Bank of India

The report outlines India's external debt as of March 31, 2025, which rose to $736.3 billion, up from $668.8 billion in the previous year. The external debt to GDP ratio marginally increased to 19.1%. Long-term debt dominates the composition, with commercial borrowings showing the highest year-on-year increase.

The external debt comprises a significant portion of foreign currency debt, primarily denominated in US dollars and Indian rupees, alongside bilateral and multilateral borrowings. Despite rising debt, the debt servicing ratio showed a slight decline, indicating manageable repayment pressures.

The report provides critical insights into debt trends and risks, underlining the importance of effective debt management and foreign exchange reserve coverage to maintain macroeconomic stability and fiscal prudence.

Follow the full report here:
https://dea.gov.in/sites/default/files/Ex%20Debt%20Report%202024-25_Final.pdf

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