Ira Singh 
India’s external debt stood at USD 747.2 billion at the end of June 2025, marking an increase of USD 11.2 billion over its level at March-end 2025, according to data released by the Reserve Bank of India (RBI) on Tuesday. Despite the rise, the external debt-to-GDP ratio moderated to 18.9% in June from 19.1% at the end of March. The central bank attributed part of the increase to a valuation loss of USD 5.1 billion, driven by the depreciation of the US dollar against the Indian rupee, yen, euro and SDR. Excluding this valuation effect, the rise in debt would have been USD 6.2 billion.
Long-term vs Short-term Debt
The RBI report, India’s External Debt as at the end of June 2025, showed that long-term debt (original maturity above one year) rose to USD 611.7 billion, up by USD 10.3 billion from March. Meanwhile, the share of short-term debt declined slightly to 18.1% of total external debt, compared with 18.3% a quarter earlier.
The short-term debt to foreign exchange reserves ratio also eased to 19.4% from 20.1% at March-end, signaling stronger reserve cover, according to information.
Currency Composition and Borrowers
The US dollar remained the dominant currency, accounting for 53.8% of India’s total external debt, followed by the Indian rupee (30.6%), yen (6.6%), SDR (4.6%) and euro (3.5%).Among borrower categories, non-financial corporations accounted for the largest share at 35.9%, followed by deposit-taking corporations (excluding the RBI), the general government, and other financial corporations.
Debt Instruments and Servicing
In terms of instruments, loans made up the biggest portion at 34.8%, followed by currency and deposits (23%), trade credit and advances (17.7%), and debt securities (16.8%). Debt service, comprising principal repayments and interest payments, remained steady at 6.6% of current receipts, unchanged from March-end 2025.
The RBI noted that while government external debt declined, non-government debt showed an increase over the quarter, reflecting higher overseas borrowings by corporates.
(Business Correspondent)
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