India's External Debt Reaches $747.2 Billion in June 2025: RBI Report Shows Improved Debt-to-GDP Ratio

The Reserve Bank of India has released data on 'India's External Debt as at the end of June 2025'

Mumbai:

According to data released by the Reserve Bank on Tuesday, India's external debt reached USD 747.2 billion at the end of June 2025, showing an increase of USD 11.2 billion compared to March-end 2025 levels.

The ratio of external debt to GDP slightly improved to 18.9 percent at June-end 2025 from 19.1 percent at the end of March 2025.

The data revealed a valuation loss of USD 5.1 billion due to the depreciation of the US dollar against the Indian rupee and other major currencies including yen, euro, and SDR.

Without considering the valuation effect, external debt would have increased by USD 6.2 billion rather than USD 11.2 billion at June-end 2025 compared to March-end 2025.

In the 'India's External Debt as at the end of June 2025' data released by the RBI, long-term debt (with original maturity exceeding one year) stood at USD 611.7 billion, showing an increase of USD 10.3 billion from March-end 2025 levels.

The proportion of short-term debt (with original maturity up to one year) in total external debt decreased to 18.1 percent at June-end 2025 from 18.3 percent in the previous quarter.

Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves improved to 19.4 percent at June-end 2025 compared to 20.1 percent at March-end 2025.

US dollar-denominated debt remained dominant in India's external debt composition, accounting for 53.8 percent at June-end 2025, followed by debt denominated in Indian rupee (30.6 percent), yen (6.6 percent), SDR (4.6 percent), and euro (3.5 percent).

The RBI reported that while outstanding debt of the general government decreased, non-government debt increased at June-end 2025 compared to March-end 2025.

Among the debt holders, non-financial corporations had the highest share at 35.9 percent of total external debt, followed by deposit-taking corporations (excluding the central bank), general government, and other financial corporations.

Loans constituted the largest component of external debt with a 34.8 percent share, followed by currency and deposits (23 percent), trade credit and advances (17.7 percent), and debt securities (16.8 percent).

Debt service (comprising principal repayments and interest payments) remained stable at 6.6 percent of current receipts at June-end 2025, unchanged from March-end 2025.