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India's External Debt Hits $778.2 Billion as Reserves Stand at $765.901 Billion

India's external debt rose by $15.4 billion in the June quarter to $778.2 billion, exceeding foreign exchange reserves of $765.901 billion recorded for the week ended September 18, 2026. The debt-to-GDP ratio, however, declined to 20.8% from 20.9% at the end of March 2026.

Editor: AI News 24x7 Published: 01 Oct 2026, 11:12 AM Updated: 01 Oct 2026, 11:12 AM

India's External Debt Hits $778.2 Billion as Reserves Stand at $765.901 Billion.

India's external debt climbed by $15.4 billion in the June quarter to $778.2 billion, according to data released by the Reserve Bank of India (RBI). The total was higher than the country's foreign exchange reserves, which stood at $765.901 billion for the week ended September 18, 2026.

The debt-to-GDP ratio, however, moved lower. It declined to 20.8% at the end of June 2026 from 20.9% on March 31, 2026. Both government and non-government external debt increased compared with the end of March 2026.

Impact of currency valuation

The RBI said the strengthening of the US dollar against major currencies such as the yen and euro produced a valuation gain of $900 million. Without the valuation effect, the increase in external debt during the June quarter would have been $16.4 billion rather than $15.4 billion.

The figures therefore include the impact of changes in the value of currencies in which India's external liabilities are denominated. The RBI separately reported the underlying increase after removing that valuation effect.

Long-term and short-term debt

Long-term external debt, defined in the data as debt with an original maturity of more than one year, stood at $624.7 billion at the end of June 2026. This was $11.2 billion higher than at the end of March 2026.

Short-term debt, covering debt with an original maturity of up to one year, accounted for 19.7% of total external debt at the end of June. Its share was 19.6% at the end of the previous quarter.

Short-term debt also rose relative to foreign exchange reserves. The ratio reached 23% at the end of June 2026, compared with 21.6% at the end of March 2026.

Currency composition and debt structure

The US dollar remained the largest currency component of India's external debt, with a 54.8% share at the end of June 2026. The Indian rupee accounted for 29.8%, followed by the yen at 6.9%, special drawing rights at 4.1% and the euro at 3.5%.

By instrument, loans formed the largest component, accounting for 34.3% of external debt. Currency and deposits represented 22.2%, trade credit and advances 19.1%, and debt securities 16.5%.

Principal and interest payments were equivalent to 5.6% of current receipts at the end of June 2026. The ratio was unchanged from the end of March 2026.

Conclusion

India's external debt rose in the June quarter, while the debt-to-GDP ratio eased slightly. Long-term borrowing remained the largest component, and the US dollar continued to account for the biggest share of the debt mix.