India’s external debt rises to $778.2 billion in June quarter: RBI

India's external debt surged to $778.2 billion by the end of the June quarter 2026, as per Reserve Bank of India (RBI) data. This marks a $15.4 billion increase from the March quarter, bringing the total external debt to a record high. Despite the growth, the external debt-to-GDP ratio saw a slight improvement, falling from 20.9% in March to 20.8% in June. This improvement is attributed to gains from the US dollar's appreciation against major currencies like the Yen and Euro, amounting to $0.9 billion.

Long-term obligations, which have maturities exceeding a year, rose to $624.7 billion in the June quarter, a $11.2 billion jump from March levels. Short-term debt, with maturities up to a year, increased slightly to 19.7% of the total external debt, from 19.6% in the previous quarter. The proportion of short-term debt relative to foreign exchange reserves also rose, from 21.6% in March to 23% in June.

The majority of India's external obligations are dollar-backed, with US dollar-denominated debt accounting for 54.8% of the total. The rupee, Yen, SDR2, and Euro make up the remaining portions at 29.8%, 6.9%, 4.1%, and 3.5%, respectively. Outstanding debt from both the government and non-government sectors increased by the end of June 2026 compared to March 2026.

The breakdown of instruments shows that loans constitute the largest share at 34.3%, followed by currency and deposits at 22.2%, trade credit and advances at 19.1%, and debt securities at 16.5%. The debt service ratio, which includes principal repayments and interest obligations, remained constant at 5.6% of current receipts, unchanged from March 2026.