Document title: India’s External Debt as at the end of June 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/1220
Date: Not specified
External sector and currency
The stock of external debt stood at US$778.2 billion at the end of June 2026, representing an increase of US$15.4 billion over the end‑March 2026 level. Valuation gains arising from the appreciation of the US dollar against major currencies such as the yen and euro contributed US$0.9 billion to the total, meaning that on a pure cash‑flow basis the debt would have risen by US$16.4 billion. The external‑debt‑to‑GDP ratio moderated slightly to 20.8 % from 20.9 % in the March quarter.
Financial stability
Long‑term debt (original maturity beyond one year) reached US$624.7 billion, up US$11.2 billion from March 2026. Short‑term debt (original maturity up to one year) accounted for 19.7 % of total external debt, a marginal rise from 19.6 % in the previous quarter, and its ratio to foreign‑exchange reserves increased to 23.0 % from 21.6 %. When measured on a residual‑maturity basis – i.e., debt due within the next twelve months irrespective of original maturity – short‑term obligations represented 43.4 % of total external debt and 50.5 % of foreign‑exchange reserves. Debt service (principal plus interest) remained at 5.6 % of current receipts, unchanged from the March quarter.
Sectoral composition
US‑dollar‑denominated debt continued to be the dominant currency component, constituting 54.8 % of the total, followed by Indian‑rupee debt at 29.8 %, yen at 6.9 %, SDR allocations at 4.1 % and euro at 3.5 %. Among borrowers, non‑financial corporations held the largest share of external debt at 36.1 %, followed by deposit‑taking corporations (excluding the central bank) at 26.2 %, general government at 22.4 % and other financial corporations at 10.2 %. Loans were the biggest instrument, representing 34.3 % of the debt stock, with currency and deposits at 22.2 %, trade credit and advances at 19.1 %, and debt securities at 16.5 %.
Government and non‑government debt
Both government and non‑government sectors recorded higher outstanding balances. Government debt (general government plus central bank) rose to US$174.3 billion, while non‑government debt increased to US$603.9 billion. Within the non‑government segment, non‑financial corporations saw their debt rise to US$281.2 billion, and direct inter‑company lending grew to US$39.1 billion.
Overall, the RBI’s external‑debt bulletin indicates a modest expansion of the debt stock, a slight improvement in the debt‑to‑GDP ratio, and a continued dominance of dollar‑denominated borrowing, with short‑term obligations representing a growing share of foreign‑exchange reserves.