Mumbai (Maharashtra) [India], September 30 (ANI): India's external debt rose to USD 778.2 billion at the end of June 2026, increasing by USD 15.4 billion from March, according to data released by the Reserve Bank of India on Wednesday.

Despite the increase in the total amount of debt, its size compared with the Indian economy remained broadly stable. External debt stood at 20.8 per cent of GDP, slightly lower than 20.9 per cent at the end of March.

The RBI data also showed that a larger share of India's foreign debt is due for repayment over the coming year.

Debt that has to be repaid within the next 12 months was equal to 50.5 per cent of India's foreign exchange reserves at the end of June, up from 47.3 per cent three months earlier.

This does not mean half of India's reserves will necessarily be used for repayment. The ratio is used to show the size of upcoming debt obligations compared with the country's available foreign exchange reserves.

Both government and private-sector external debt increased during the quarter. Government external debt rose to USD 174.3 billion, while non-government debt stood at USD 603.9 billion.

Companies outside the financial sector continued to account for the largest share of India's external debt, at 36.1 per cent. Banks and other deposit-taking institutions accounted for 26.2 per cent, while the government accounted for 22.4 per cent.

Loans remained the largest form of external borrowing, followed by deposits, trade credit and debt securities.

The RBI also said currency movements reduced the increase in India's external debt during the quarter. Without this impact, external debt would have risen by USD 16.4 billion instead of USD 15.4 billion.

Debt servicing, which includes repayment of principal and interest, remained unchanged at 5.6 per cent of current receipts. (ANI)