India's external debt rises to $778.2 billion at end-June, RBI data shows

India's external debt rose to $778.2 billion at the end of June 2026, compared with $762.8 billion at the end of March, according to the latest figures reported by the Reserve Bank of India (RBI) on Wednesday. The increase of $15.4 billion during the April-June quarter reflected a rise in the country's outstanding liabilities to overseas creditors.

External debt includes financial obligations owed by the government, companies, banks and other domestic entities to foreign lenders and investors. The RBI's quarterly statistics provide an assessment of these liabilities, including their maturity structure, currency composition and distribution across different borrowing categories.

External borrowings increase during June quarter

The latest figures indicated an increase in India's outstanding external debt following the March 2026 level of $762.8 billion. At the end of March, the country's external debt-to-GDP ratio stood at 20.8 per cent, compared with 19.8 per cent a year earlier.

External debt movements can reflect fresh overseas borrowings, repayments and changes in the valuation of outstanding liabilities denominated in different currencies. Exchange rate fluctuations can also affect the reported dollar value of India's external debt without necessarily representing additional borrowing.

Debt composition remains important

India's external debt comprises commercial borrowings, non-resident deposits, multilateral and bilateral loans, trade credit and other overseas liabilities. At the end of March 2026, US dollar-denominated debt accounted for 55.5 per cent of the outstanding stock, followed by Indian rupee-denominated debt at 29.4 per cent.

The latest increase highlights the importance of monitoring external borrowing trends alongside foreign exchange reserves, repayment obligations and the country's balance of payments. The maturity profile and currency composition of overseas liabilities remain important indicators in assessing India's external financial position.