India’s external debt stood at US$778.2 billion by end-June 2026, up US$15.4 billion from March 2026. The external debt to GDP ratio declined to 20.8%, indicating improved sustainability despite rising liabilities.
External Debt Reaches $778.2 Billion by June 2026
As of end-June 2026, India's stock of external debt was US$778.2 billion, marking an increase of US$15.4 billion compared to the level at end-March 2026. This data, released by the Reserve Bank of India, reflects revised figures for previous quarters and reveals trends in India's external financial obligations.
The external debt to GDP ratio declined to 20.8%, down from 21.0% in the previous quarter, indicating improved debt sustainability amid relatively strong nominal GDP growth. Long-term debt constituted the majority of the external debt portfolio, with commercial borrowings, NRI deposits, and short-term trade credit forming key components.
The rise in debt was primarily driven by fresh borrowings and valuation changes. Despite the increase, debt indicators remain within manageable limits, and the composition continues to reflect stable sources of funding. For legal practitioners, this data informs risk assessment in cross-border financing and sovereign exposure analysis.
