India’s external debt reached a record high of USD 736.3 billion in the March quarter of 2025, an increase of USD 67.5 billion compared to USD 668.8 billion in the same period last year. Long-term debt, maturing in more than one year, stood at USD 601.9 billion at the end of March 2025, rising by USD 60.6 billion from the previous year. Short-term debt also increased to USD 134.5 billion from USD 127.6 billion, with its ratio to foreign exchange reserves climbing to 20.1%. The overall rise was driven by an increase in non-government debt, particularly among companies (USD 261.7 billion vs. USD 253 billion) and deposit-taking corporations (USD 202.1 billion vs. USD 186.8 billion).
