India's external debt rises to $747.2 billion
India's external debt reached $747.2 billion by June 2025, rising by $11.2 billion in just three months, according to the RBI.
But here's a positive twist: even with more debt, the debt-to-GDP ratio actually dipped a bit to 18.9%.
Most of this debt is long-term (over a year), which bumped up to $611.7 billion, while short-term debt now makes up 18.1% of the total.
Debt composition and key players
Most of this borrowed money is in US dollars (about 54%), with Indian rupees coming next at 31%.
Interestingly, it's not the government piling on more debt—it's mainly private companies and banks driving the increase.
Non-financial corporations alone hold about 36% of all external debt.
Major components of external debt
Loans make up the biggest chunk at nearly 35%, followed by currency deposits and trade credits.
The good news? Debt servicing costs—what we pay back compared to what we earn from abroad—stayed steady at around 6.6%.
So while the numbers are big, things aren't spiraling out of control; it's mostly business as usual for now.