FX.co ★ India's External Debt Hits Record in March

India's external debt reached a new peak of USD 736.3 billion during the March quarter of 2025, marking a USD 67.5 billion rise from USD 668.8 billion in the corresponding period of the previous year. Long-term debt, defined as obligations maturing in over one year, escalated to USD 601.9 billion by the end of March 2025, showing an increase of USD 60.6 billion year-on-year. Meanwhile, short-term debt rose to USD 134.5 billion from USD 127.6 billion, resulting in its ratio to foreign exchange reserves increasing to 20.1%. The overall debt growth was largely propelled by an upswing in non-government debt, highlighted by increments among corporate entities (USD 261.7 billion compared to USD 253 billion) and deposit-taking institutions (USD 202.1 billion versus USD 186.8 billion).