India’s external financial obligation increases to $762.8 billion in FY26, debt-to-GDP ratio climbs up

India’s external financial obligation increases to$762.8 billion in FY26, debt-to-GDP ratio climbs up

Summary

India’s external financial obligation reached $762.8 billion by March 2026, an increase of$26.3 billion year-on-year, pressing the debt-to-GDP ratio to 20.8%. The United States dollar’s strength considerably affected this figure.

Mumbai: India’s external financial obligation was at $762.8 billion at the end of March 2026 up$ 26.3 billion from a year earlier. As an outcome, the external financial obligation to GDP ratio increased to 20.8 %at the end of March 2026 from 19.8 %a year earlier.

The assessment result due to the gratitude of the United States dollar vis-à-vis the Indian rupee throughout the quarter and other significant currencies totaled up to $24.6 billion, RBI stated. Leaving out the assessment impact, external financial obligation would have increased by $ 51 billion rather of $ 26.3 billion year on year.

“At the end of March 2026, long-lasting financial obligation (with initial maturity of above one year)was positioned at $ 613.5 billion, tape-recording a boost of $ 11.6 billion over its level at end-March 2025. The share of short-term financial obligation (with initial maturity of as much as one year)in overall external financial obligation increased to 19.6% at end March 2026 from 18.3%at end March 2025. The ratio of short-term financial obligation( initial maturity )to foreign exchange reserves increased to 21.6%up from 20.1%reported at the end of March 2025,”Rbi stated.

United States dollar-denominated financial obligation stayed the biggest part of India’s external financial obligation, with a share of 55.5%since March 2026, followed by financial obligation denominated in the Indian rupee (29.4%), yen (6.4%), unique illustration rights with IMF (4.3%) and euro (3.7%).

Loans stayed the biggest element of external financial obligation, with a share of (34.7%), followed by currency and deposits (22.3%), trade credit and advances (19%) and financial obligation securities (16.1%). “Debt service (i.e., primary payments and interest payments) decreased to 5.8% of present invoices at end March 2026 from 6.6% a year back,” RBI stated.

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