India’s External Debt Rises 10% to $736.3 Billion: RBI Data

India’s external debt surged by 10% to reach $736.3 billion at the end of March 2025, up from $668.8 billion a year earlier, according to the latest data released by the Reserve Bank of India (RBI). This increase has also pushed the external debt-to-GDP ratio up from 18.5% to 19.1%, reflecting the impact of global financial conditions, rising loan demands, and currency valuation effects.

Why in News?

RBI has released data indicating a $67.5 billion increase in external debt year-on-year. Debt-to-GDP ratio has climbed to 19.1%, raising concerns over macroeconomic stability. The report breaks down debt by sector, currency denomination, and maturity structure.

Key Highlights

• Total External Debt (as of March 2025): $736.3 billion
• Previous Year (March 2024): $668.8 billion
• Increase: 10% or $67.5 billion

External Debt-to-GDP Ratio

• FY24: 18.5% → FY25: 19.1%

Valuation Effect

• Due to US dollar appreciation, the valuation effect was $5.3 billion.
• Excluding valuation impact, debt would have increased by $72.9 billion.

Debt Composition by Borrower

• Non-financial corporations: $261.7 billion
• Government: $168.4 billion
• Deposit-taking corporations (excl. RBI): $202.1 billion

Maturity Profile

• Long-term debt (maturity > 1 year): $601.9 billion
• Increase of $60.6 billion year-on-year

Short-term debt (maturity ≤ 1 year)

• Share in total debt fell from 19.1% to 18.3%
• However, short-term debt as a percentage of forex reserves rose to 20.1% from 19.7%

Debt by Currency Denomination

• US Dollar: 54.2%
• Indian Rupee: 31.1%
• Japanese Yen: 6.2%
• Special Drawing Rights (SDR): 4.6%
• Euro: 3.2%

Debt by Instrument Type

• Loans: 34%
• Currency & Deposits: 22.8%
• Trade Credit & Advances: 17.8%
• Debt Securities: 17.7%

Summary/Static	Details
Why in the news?	India’s External Debt Rises 10% to $736.3 Billion: RBI Data
Total External Debt (March 2025)	$736.3 billion
External Debt (March 2024)	$668.8 billion
Increase (YoY)	$67.5 billion (10%)
Debt-to-GDP Ratio (FY25)	19.1%
Long-term Debt	$601.9 billion
Short-term Debt Share	18.3%
Top Currency Share	USD (54.2%)