International debt climbs: India’s exterior debt rises 10% to $736.3 billion in FY25; debt-to-GDP edges as much as 19.1%

India’s exterior debt rose 10% to $736.3 billion on the finish of March 2025 from $668.8 billion a yr earlier, in keeping with knowledge launched by the Reserve Financial institution of India (RBI) on Friday. The debt-to-GDP ratio additionally inched as much as 19.1% from 18.5% in FY24.The rise features a $5.3 billion valuation influence as a result of appreciation of the US greenback towards the rupee and different currencies. Excluding this impact, the underlying enhance in debt was $72.9 billion, PTI reported.Breakdown of debt compositionThe non-financial company sector accounted for the biggest share, borrowing $261.7 billion. Deposit-taking firms excluding the central financial institution owed $202.1 billion, whereas the federal government’s share of exterior debt stood at $168.4 billion.Lengthy-term debt (with authentic maturity above one yr) rose by $60.6 billion to $601.9 billion. In the meantime, the share of short-term debt in whole exterior liabilities declined to 18.3% from 19.1% a yr in the past. Nevertheless, the ratio of short-term debt to international change reserves rose barely to twenty.1%, up from 19.7% on the finish of FY24, the report stated.Debt devices and forex combine

The US greenback continued to dominate India’s international borrowing, accounting for 54.2% of the full exterior debt. Different currencies within the debt combine included the Indian rupee (31.1%), Japanese yen (6.2%), Particular Drawing Rights (4.6%), and euro (3.2%).