India’s External Debt Up $67.5 Billion to $736.3 Billion

India external debt 2025 data shows a significant increase: as per the Reserve Bank of India (RBI), the country’s total external debt jumped by $67.5 billion to touch $736.3 billion at the end of March 2025. This is a 10% rise year-on-year from $668.8 billion at the end of March 2024

📈 Why India external debt 2025 is rising

1. Global dollar effect: Nearly $5.3 billion of the increase was due to the valuation effect, as the US dollar gained strength against the rupee and other major currencies
2. New borrowings: Excluding valuation, net fresh borrowing was about $72.9 billion.
3. Growth push: Rising debt supports investments in infrastructure, industry, and digital projects.

🏦 Composition of India external debt 2025

• Long-term debt: Rose by $60.6 billion to $601.9 billion, making up over 81% of total debt.
• Short-term debt: Its share fell to 18.3% from 19.1%, but its ratio to forex reserves increased slightly to 20.1% outlookbusiness

Currency-wise:

• US dollar: 54.2%
• Indian rupee: 31.1%
• Japanese yen: 6.2%
• SDR: 4.6%
• Euro: 3.2%

Sector-wise:

📊 India external debt 2025 as % of GDP

The debt-to-GDP ratio went up slightly to 19.1% from 18.5% in FY24

This means India’s external debt is growing faster than GDP, but still remains at a moderate level compared to many emerging economies.

🔍 What experts say

• The increase shows higher capital inflows and confidence in India’s growth story.
• Rising USD share means exchange rate risk: if the dollar strengthens further, debt costs may rise.
• Valuation effects show how external factors (like dollar strength) can inflate debt numbers even without new borrowings.

📅 Recent context: Current account surplus

India posted a $13.5 billion current account surplus in Jan-Mar 2025, which helps build reserves to manage external debt risks.

🌏 Why India external debt 2025 matters

• Supports economic growth and infrastructure.
• Needs careful management to avoid vulnerability to currency swings.
• Valuation-driven rises highlight the need to diversify borrowing away from USD.

✅ Quick summary

📌 Conclusion

The India external debt 2025 data reflects a rise driven by new borrowings and currency valuation effects. While India’s external debt remains manageable as a share of GDP, high USD exposure and global market volatility remain risks to watch.