India’s external financial health improves marginally in Q1 FY27 amid global headwinds
India’s external financial position improved marginally in Q1 FY27, RBI data showed. External debt rose $15.4 billion to $778.2 billion, while the debt-to-GDP ratio eased to 20.8%. Net international liabilities increased to $220.3 billion but remained below year-ago levels.
India's external financial health showed marginal improvement in Q1 FY27, according to data from the Reserve Bank of India. Despite a $15.4 billion increase in external debt to $778.2 billion, the external debt to GDP ratio decreased to 20.8% from 20.9% due to global headwinds. The gap between India's international liabilities and assets widened to $220 billion at the end of June but moderated compared to a one-year period.
Loans accounted for 34.3% of the external debt, while the US dollar-denominated debt made up 54.8% of the total liabilities. Net claims of non-residents from India increased by $16.5 billion, primarily due to higher external liabilities and a decline in foreign-owned assets.
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