India's external debt rises to $762.8 billion in FY26, debt-to-GDP ratio climbs

India's external debt reached $762.8 billion by March 2026, a rise of $26.3 billion year-on-year, pushing the debt-to-GDP ratio to 20.8%.

The US dollar's strength significantly impacted this figure. While long-term debt saw a modest increase, short-term debt's share grew, raising concerns about its proportion to foreign exchange reserves.

Despite these shifts, debt servicing as a percentage of current receipts declined.