India's External Debt Rises to $778.2 Billion in Q1 FY2026, RBI Data Shows

Figures from the Reserve Bank of India show that the country's external financial position strengthened modestly during the opening quarter of the fiscal year, despite an unfavourable global economic backdrop. The nation's external debt as a share of GDP edged down to 20.8% from 20.9% in the preceding quarter, even though total borrowings climbed by $15.4 billion during the first quarter of the fiscal year to reach $778.2 billion by end-June. India's net international investment position — the shortfall between its overseas obligations and foreign holdings — stood at $220 billion at end-June, narrowing considerably from $313 billion a year earlier but widening from $204 billion in the preceding quarter, according to figures published Wednesday by the central bank. Debt obligations with an original maturity exceeding one year totalled $624.7 billion, reflecting a $11.2 billion rise compared with the figure recorded at the close of March 2026. Among the categories of external debt, loans held the top position at 34.3%, with currency and deposits accounting for 22.2%, trade credit and advances at 19.1%, debt securities at 16.5%, and remaining instruments comprising 8.1%. Among the various currencies making up India's external debt, the US dollar held the largest portion at 54.8%, while the rupee accounted for 29.8% of the total outstanding liability. The remainder is held in international currencies such as the yen and euro, along with special drawing rights. Currency appreciation of the US dollar relative to the yen, euro, and other leading currencies generated roughly $0.9 billion in portfolio valuation increases. According to RBI figures, stripping out the valuation effect would have pushed the rise in external debt to $16.4 billion rather than the recorded $15.4 billion. Foreign claims on India exceeded Indian holdings overseas by $220.3 billion at the close of June 2026, a figure that expanded by $16.5 billion over the preceding three months. The movement stems primarily from a rise of $11.6 billion in external liabilities alongside a $4.9 billion reduction in overseas-held assets. Overseas financial obligations held by Indian residents expanded as well, driven primarily by a $15.7 billion upturn in direct investment and $4.2 billion in other investment flows, which offset a $14 billion contraction in portfolio equity holdings. Foreign exchange receipts from intangible services, investments, and remittances climbed to $163 billion during the first quarter, up from $144 billion recorded in the same period a year earlier. India's services trade recorded export receipts of $35.5 billion in August, while outward payments for imports stood at $18.9 billion.

India's External Debt Rises to $778.2 Billion in Q1 FY2026, RBI Data Shows

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India's External Debt Rises to $778.2 Billion in Q1 FY2026, RBI Data Shows

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