External debt up at USD 778.2 billion in June quarter: RBI data

Mumbai, Sep 30 (PTI) India’s external debt rose by USD 15.4 billion to USD 778.2 billion at the end of June quarter 2026 as compared to the previous March quarter, according to Reserve Bank data released on Wednesday.

However, the external debt to GDP ratio moderated to 20.8 per cent at end-June 2026 from 20.9 per cent on March 31, 2026.

“Valuation gains due to the appreciation of the US dollar vis-à-vis major currencies such as Yen and Euro amounted to USD 0.9 billion. Excluding the valuation effect, external debt would have increased by USD 16.4 billion instead of USD 15.4 billion at end-June 2026 over end-March 2026,” RBI said.

In June quarter, the long-term debt (with original maturity of above one year) was placed at USD 624.7 billion, recording

an increase of USD 11.2 billion from March 2026.

Further, the share of short-term debt (with original maturity of up to one year) in total external debt increased to 19.7 per cent at end-June 2026 from 19.6 per cent in the preceding quarter.

Similarly, the ratio of short-term debt (original maturity) to foreign exchange reserves increased to 23 per cent at end-June 2026 (21.6 per cent at end-March 2026).

RBI said US dollar-denominated debt remained the largest component of India’s external debt, with a share of 54.8 per cent at end-June 2026, followed by debt denominated in the Indian rupee (29.8 per cent), Yen (6.9 per cent), SDR2 (4.1 per cent), and Euro (3.5 per cent).

“Outstanding debt of both government and non-government sectors increased at end-June 2026 over its level at end-March 2026,” it said.

Loans remained the largest component of external debt, with a share of 34.3 per cent, followed by currency and deposits (22.2 per cent), trade credit and advances (19.1 per cent) and debt securities (16.5 per cent).

Debt service or principal repayments and interest payments stood at 5.6 per cent of current receipts at end-June 2026, same as march 2026. PTI NKD NKD ANU

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