India's external debt surges by 10.1%
India's external debt climbed by $67.5 billion to reach $736.3 billion as of March 2025, according to the RBI.
This means the country is borrowing more from abroad, with the debt now making up 19.1% of India's GDP (up from 18.5%).
Long-term vs short-term debt
Most of this debt is long-term, rising to $601.9 billion, while short-term debt makes up a smaller slice but is still significant compared to India's foreign exchange reserves.
About 41% of all external debt will need to be repaid within a year, so there are some near-term obligations India has to keep an eye on.
Who holds the most external debt?
Non-financial companies hold the biggest chunk (35.5%), followed by banks and deposit-takers (27.5%), and then the government (22.9%).
Loans are the main way India borrows from outside, making up about a third of all external debt—so how these groups manage repayments matters for everyone watching India's economy right now!