India’s External Debt Hits $747.2 Billion at June-End 2025: RBI Data

India’s external debt stood at $747.2 billion at the end of June 2025, an increase of $11.2 billion from March-end. As per the news reports, on a year-on-year basis, the stock of debt rose by 9.6% from $681.5 billion recorded in June 2024.

Debt-to-GDP and Liabilities

The external debt-to-GDP ratio moderated to 18.9% in June 2025 compared with 19.1% in March 2025. The ratio of international assets to liabilities improved to 79.25%, up from 77.6% a quarter earlier.

Currency Valuation Effect

According to the RBI, a valuation loss of $5.1 billion occurred due to the depreciation of the US dollar against the rupee, yen, euro, and SDR. Without this valuation impact, the increase in debt would have been $6.2 billion instead of $11.2 billion.

Maturity Profile

Long-term debt (maturity of more than one year) was placed at $611.7 billion at June-end, higher by $10.3 billion from March. The share of short-term debt eased slightly to 18.1% of total external debt, compared with 18.3% a quarter earlier. Its ratio to foreign exchange reserves also declined to 19.4% from 20.1%.

Currency Composition

Debt denominated in the US dollar accounted for 53.8% of the total. The Indian rupee formed 30.6%, followed by the yen (6.6%), SDR (4.6%), and the euro (3.5%).

Sector and Instruments

Among borrowers, non-financial corporations accounted for the highest share at 35.9% of total external debt. This was followed by deposit-taking corporations, the general government, and other financial corporations. By instruments, loans held 34.8%, followed by currency and deposits (23%), trade credit and advances (17.7%), and debt securities (16.8%).

Servicing and Coverage

Debt service payments, including principal and interest, stood at 6.6% of current receipts, unchanged from March. Over 93% of the external debt is covered by foreign exchange reserves.

Read More: RBI MPC October 2025: Inflation, Repo Rate, and Market Expectations Ahead of Policy Decision!

Conclusion

The data shows India’s external debt rose in the June 2025 quarter, with valuation effects contributing to the increase, while key ratios against GDP and reserves recorded slight improvement.

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