India’s external debt stood at US$762.8 billion at the end of March 2026, up US$26.3 billion from a year earlier. The country’s external debt-to-GDP ratio also increased to 20.8% from 19.8% in March 2025.
The stronger US dollar reduced the reported increase in debt. The valuation impact was US$24.6 billion. Without this currency effect, India‘s external debt would have risen by US$51 billion over the year.
Long-term external debt increased to US$613.5 billion, up US$11.6 billion from a year ago. The share of short-term debt rose to 19.6% of total external debt from 18.3%, while its ratio to foreign exchange reserves increased to 21.6% from 20.1%.
On a residual maturity basis, debt due within the next 12 months accounted for 42.9% of total external debt, up from 41.2% a year earlier. It also rose to 47.3% of foreign exchange reserves from 45.4%.
The US dollar remained the largest borrowing currency, making up 55.5% of India’s external debt, followed by the Indian rupee (29.4%), Japanese yen (6.4%), SDR (4.3%), and euro (3.7%). Government debt declined during the year, while non-government debt increased.
Among borrowers, non-financial companies held the largest share of external debt at 36.4%, followed by banks (26.5%), the government (22%), and other financial firms (10.2%). Loans remained the biggest component of external debt at 34.7%, ahead of currency and deposits (22.3%), trade credit (19%), and debt securities (16.1%). India’s debt service ratio improved, falling to 5.8% of current receipts from 6.6% a year earlier.
India’s External Debt Jumps $26.3B to $762.8B in March 2026
I’m Abhishek Sharma, an Advocate based in Delhi, entrepreneur, investor, and founder of BigBreakingWire. I am an enrolled Advocate with a strong interest in entrepreneurship, media, and technology. I founded BigBreakingWire, a digital news platform covering breaking news, business, financial markets, companies, and important developments in India and around the world. I also have a software company and take an active interest in technology, software, AI, digital products, and new business ideas. As an investor, I’m interested in discovering and investing in promising businesses and startups. I look for good ideas, strong founders, practical business models, and opportunities with long-term potential. I enjoy building businesses, learning about new industries, and connecting with people who are working on interesting ideas and opportunities. Advocate | Entrepreneur | Investor | Founder & Editor-in-Chief, BigBreakingWire
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