India's external debt reached $778.2 billion in June 2026, with the debt-to-GDP ratio easing to 20.8% even as short-term debt obligations increased relative to foreign exchange reserves.
India's total external debt climbed to $778.2 billion by the end of June 2026, marking a $15.4 billion increase from the previous quarter. Despite the rise in nominal debt, the external debt-to-GDP ratio slightly moderated to 20.8% from 20.9% in March 2026.
The increase was driven by a $15.4 billion rise in total debt, partially offset by $0.9 billion in valuation gains resulting from the US dollar's appreciation against the Yen and Euro.
The ratio moderated slightly to 20.8% at the end of June 2026, compared to 20.9% at the end of March 2026.