India External Debt - A Status Report 2025-26

INDIA’S EXTERNAL DEBT A Status Report 2025-26 GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS ECONOMIC DIVISION EXTERNAL DEBT MANAGEMENT UNIT www.dea.gov.in September 2026 iiiTABLE OF CONTENTS ABBREVIATIONS ...................................................................................................................... viii EXECUTIVE SUMMARY ........................................................................................................... xii

Chapter 1 ......................................................................................................................................... 1 India’s External Debt – An Overview ........................................................................................... 1

1.1 OVERVIEW ................................................................................................................ 1

1.2 KEY INDICATORS OF DEBT SUSTAINABILITY ................................................. 3

1.2.1 External Debt-to-GDP Ratio ........................................................................................ 3

1.2.2 Short-term Debt to Total External Debt ....................................................................... 3

1.2.3 Foreign Exchange Reserves to Total External Debt .................................................... 4

1.3 CONCLUSION ........................................................................................................... 5

Chapter 2 ......................................................................................................................................... 6 Classification of India’s External Debt ......................................................................................... 6

2.1 SECTOR-WISE CLASSIFICATION .......................................................................... 7

2.2 CREDITOR-WISE CLASSIFICATION ..................................................................... 8

2.2.1 Official Creditors (Multilateral and Bilateral) ............................................................. 9

2.2.2 Debt from International Monetary Fund (SDR) ........................................................ 10

2.2.3 Trade Credits ............................................................................................................. 10

2.2.4 Commercial Borrowings ............................................................................................ 11

2.2.5 Non-Resident Indians (NRI) Deposits ....................................................................... 12

2.2.6 Rupee Debt ................................................................................................................ 12

2.3 DEBTOR-WISE CLASSIFICATION ....................................................................... 13

2.4 MATURITY-WISE CLASSIFICATION ................................................................... 15

2.4.1 Total External Debt by Original Maturity ................................................................. 15

2.4.1.1 Short-term debt by Original Maturity ........................................................................ 16

2.4.2 Total External Debt by Residual Maturity ................................................................. 17

2.4.2.1 Short-term debt by Residual Maturity ....................................................................... 19

2.5 CURRENCY-WISE CLASSIFICATION .................................................................. 19

2.6 INSTRUMENT-WISE CLASSIFICATION .............................................................. 21

2.6.1 Special drawing rights (SDRs) .................................................................................. 21

2.6.2 Currency and Deposits ............................................................................................... 22

2.6.3 Loans ......................................................................................................................... 22

2.6.4 Trade Credit and Advances ........................................................................................ 23

2.6.5 Debt Securities ........................................................................................................... 23 iii2.6.6 Direct Investment: Inter-Company lending ............................................................... 24

2.7 CONCESSIONALITY-WISE CLASSIFICATION .................................................. 24

2.8 CONCLUDING OBSERVATION ............................................................................. 25

Chapter 3 ....................................................................................................................................... 26 Sovereign External Debt ............................................................................................................... 26

3.1 INTRODUCTION ..................................................................................................... 26

3.2 COMPOSITION OF SOVEREIGN EXTERNAL DEBT ......................................... 27

3.2.1 External Assistance .................................................................................................... 28

3.2.1.1 Multilateral Debt ....................................................................................................... 29

3.2.1.2 Bilateral Debt ............................................................................................................ 31

3.2.2 Other Government Debt (OGD) ................................................................................ 32

3.2.2.1 FII in G-Sec ............................................................................................................... 32

3.2.2.2 Special Drawing Rights (SDR) .................................................................................. 33

3.2.2.3 Defence External Debt ............................................................................................... 33

3.3 CURRENCY COMPOSITION ................................................................................. 33

3.4 SOVEREIGN EXTERNAL DEBT SERVICE PAYMENTS .................................... 34

3.5 CONTINGENT LIABILITY ..................................................................................... 35

3.6 PROJECTIONS OF SOVEREIGN EXTERNAL DEBT SERVICE PAYMENTS ... 37

3.7 CONCLUDING OBSERVATION ............................................................................. 38

Chapter 4 ....................................................................................................................................... 39 India’s External Debt Service Payments .................................................................................... 39

4.1 INTRODUCTION ..................................................................................................... 39

4.2 INDIA’S EXTERNAL DEBT SERVICE PAYMENTS ............................................ 39

4.3 TERMS OF BORROWINGS .................................................................................... 43

4.3.1 Implicit Interest Rate ................................................................................................. 43

4.3.2 Average Terms of New Commitments ....................................................................... 44

4.4 PROJECTIONS OF EXTERNAL DEBT SERVICE PAYMENTS .......................... 45

4.5 CONCLUSION ......................................................................................................... 46

Chapter 5 ....................................................................................................................................... 47 India’s External Debt Position - A Cross-Country Perspective ................................................ 47

5.1 GLOBAL EXTERNAL DEBT .................................................................................. 47

5.1.1 Global External Debt: Maturity-Wise........................................................................ 50

5.1.2 Global Stock of External Debt: Sector-Wise ............................................................. 50

5.2 EXTERNAL DEBT OF EMERGING MARKETS AND DEVELOPING ECONOMIES (EMDEs) ............................................................................................................. 51 iv5.3 EXTERNAL DEBT VULNERABILITY INDICATORS OF LOW AND MIDDLE- INCOME COUNTRIES (LMICs) .............................................................................................. 53

5.3.1 External Debt to Gross National Income (GNI) ........................................................ 54

5.3.2 Share of Short-Term Debt .......................................................................................... 54

5.3.3 Forex Reserve to External Debt ................................................................................. 55

5.3.4 External Debt to Exports ........................................................................................... 56

5.4 PRESENT VALUE OF EXTERNAL DEBT ............................................................ 58

5.5 CONCLUSION ......................................................................................................... 59 Annexures ...................................................................................................................................... 60 TABLES Table 2.1: India’s External Debt: Creditor-wise ............................................................................. 10 Table 2.2: India’s External Debt: Debtor-wise ................................................................................ 13 Table 2.3: Residual Maturity of External Debt Outstanding as of end-March 2026 ...................... 18 Table 3.1: Projections of Sovereign External Debt Service Payments: Creditor-wise ................... 37 Table 4.1: Disbursements and Principal Repayments under Short-Term Debt ............................... 42 Table 4.2: Implicit Interest Rates on India’s External Debt – Source-wise .................................... 43 Table 4.3: Average Terms of New Commitments for India ............................................................ 44 Table 4.4: Projections of External Debt Service Payments – Creditor-wise .................................. 45 Table 5.1: Gross External Debt Stock of Top 20 Debtor Countries ................................................ 49 Table 5.2: Gross External Debt Stock of EMDEs ........................................................................... 52 FIGURES Figure 1.1: Stock of India’s External Debt – US Dollar and Indian Rupees (at end-March) ........... 2 Figure 1.2: External Debt and Valuation Effect (at end-March) ....................................................... 2 Figure 1.3: India’s External Debt and Debt to GDP ratio (at end-March) ........................................ 3 Figure 1.4: India’s Short-Term External Debt (at end-March) ......................................................... 4 Figure 1.5: Foreign Exchange Reserves to External Debt (at end-March) ....................................... 4 Figure 2.1: India’s External Debt: Sovereign and Non-Sovereign (at end-March) .......................... 8 Figure 2.2: Share of External Debt as of end-March 2026: Creditor-wise ....................................... 9 Figure 2.3: Long-Term and Short-Term Trade Credit (at end-March) ............................................ 11 Figure 2.4: Commercial Borrowings: Component-wise (at end-March) ........................................ 12 Figure 2.5: India’s External Debt: Debtor-wise (at end-March) ..................................................... 14 Figure 2.6: India’s External Debt: Maturity-wise (at end-March) .................................................. 15 vFigure 2.7: Share of Long-Term and Short-Term Debt (at end-March) ......................................... 16 Figure 2.8: India’s External Debt at end-March 2026: Residual Maturity-wise ............................. 17 Figure 2.9: Composition of Short-Term Debt by Residual Maturity: Sector-wise at end-March

2026................................................................................................................................................. 18 Figure 2.10: Share of Foreign Currency Debt in Total External Debt (%) (at end-March) ............ 20 Figure 2.11: India’s External Debt: Currency Composition (at end-March) .................................. 20 Figure 2.12: India’s External Debt at end-March 2026: Instrument-wise ...................................... 21 Figure 2.13: India’s External Debt: Concessional and Non-Concessional (at end-March) ............ 25 Figure 3.1: Sovereign External Debt: Stock and Share .................................................................. 27 Figure 3.2: Components of Sovereign External Debt (at end-March 2026) ................................... 28 Figure 3.3: Composition of Sovereign External Debt under External Assistance .......................... 28 Figure 3.4: External Assistance vs Other Government Debt (at end-March) ................................. 29 Figure 3.5: Composition of Multilateral Debt (at end-March) ....................................................... 30 Figure 3.6: Relative Contribution of Different Multilateral Organisations in the Growth of Debt under External Assistance (at end-March) ...................................................................................... 30 Figure 3.7: Composition (% Share) of Bilateral Debt (at end-March) ........................................... 31 Figure 3.8: Composition of Other Government Debt (at end-March) ............................................ 32 Figure 3.9: Currency Composition (% share) of Sovereign External Debt (at end-March) ........... 33 Figure 3.10: Multilateral Debt Service Payments (at end-March) .................................................. 34 Figure 3.11: Bilateral Debt Service Payments (at end-March) ....................................................... 35 Figure 3.12: Government Debt and Government Guaranteed Debt (at end-March) ...................... 36 Figure 3.13: Government Guaranteed External Debt of Debtor Sectors (at end-March) ............... 36 Figure 4.1: External Debt Service Payments – Total, Principal and Interest (at end-March) ......... 40 Figure 4.2: External Debt Service Payments and Debt Service Ratio (at end-March) ................... 41 Figure 4.3: Composition of India’s External Debt Service Payments (at end-March) ................... 41 Figure 5.1: Global External Debt (at end-December) ..................................................................... 48 Figure 5.2: External Debt to GDP Ratio of top 20 Debtor Countries (at end-December) .............. 50 Figure 5.3: External Debt of top 20 Debtors as at end-December 2025: Sector-wise .................... 51 Figure 5.4: Select External Debt Sustainability Indicators: LMICs (at end-December) ................ 53 Figure 5.5: Select External Debt Indicators at end-December 2024 – LMICs vs India ................. 55 Figure 5.6: Select External Debt Vulnerability Indicators at end-December 2025 ........................... 57 Figure 5.7: Select Indicators of Present Value of External Debt – Top 20 LMIC Debtor Countries at end-December 2024 .................................................................................................................... 59 viANNEXURES

Annexure I: External Debt: Definitions, Concepts and Dissemination of Data ............................. 60

Annexure II: Key External Debt Indicators .................................................................................... 66

Annexure III: India’s External Debt Outstanding (Annual) – Rupees ............................................ 68

Annexure IV: India’s External Debt Outstanding (Annual) – US Dollar ....................................... 72

Annexure V: India’s External Debt Outstanding (IMF’s Format) – Rupees ................................... 76

Annexure VI: India’s External Debt Outstanding (IMF’s Format) – US Dollar ............................ 80

Annexure VII: External Debt by Borrower Classification.............................................................. 84

Annexure VIII: Instrument-wise Classification of External Debt Stock at end-March 2026 ......... 85

Annexure IX: Composition of External Debt: Currency-wise ....................................................... 87

Annexure X: Short-Term Debt by Residual Maturity ..................................................................... 88

Annexure XI: Creditor-wise Sovereign External Debt – Rupees ................................................... 89

Annexure XII: Creditor-wise Sovereign External Debt – US Dollar ............................................. 91

Annexure XIII: Currency Composition of Sovereign External Debt ............................................. 93

Annexure XIV: Sovereign External Debt Service Payments .......................................................... 94

Annexure XV: Creditor-wise External Debt Service Payments on Government Account under External Assistance ........................................................................................................................ 95

Annexure XVI: Central Government Guarantees on External Debt .............................................. 96

Annexure XVII: Projections of External Debt Service Payments on Sovereign Debt – Creditor- wise ................................................................................................................................................. 97

Annexure XVIII: India’s External Debt Service Payments – Source-wise .................................... 98

Annexure XIX: India’s External Debt Service Payments by Creditor Category ............................ 99

Annexure XX: International Comparison of Top Low- and Middle- Income Debtor Countries,

2024............................................................................................................................................... 101

Annexure XXI: Gross External Debt Position of Top Twenty Developing Countries ................ 102

Annexure XXII: Gross External Debt Position of BRICS Countries .......................................... 104

Annexure XXIII: External Debt Position of Top 20 Debtor Countries in the World ................... 105

Annexure XXIV: External Commercial Borrowings .................................................................... 106 viiABBREVIATIONS A ADB - Asian Development Bank AEs - Advanced Economies AIIB - Asian Infrastructure Investment Bank B BOP - Balance of Payments BPM - Balance of Payments Manual BRICS - Brazil, Russia, India, China and South Africa C CAAA - Controller of Aid, Accounts and Audit CB - Central Bank CBs - Commercial Borrowings CCIL - Clearing Corporation of India Limited CP - Commercial Paper CPI - Consumer Price Index CRR - Cash Reserve Ratio CS-DRMS - Commonwealth Secretariat Debt Recording and Management System CUB - Committed Undisbursed Balance D DEA - Department of Economic Affairs DI - Direct Investment DSIM - Department of Statistics and Information Management DSR - Debt Service Ratio viiiDSSI - Debt Service Suspension Initiative E EA - External Assistance ECBs - External Commercial Borrowings ED - External Debt EDS - External Debt Statistics EIB - European Investment Bank EMDEs - Emerging Market and Developing Economies EMEs - Emerging Market Economies F FCCB - Foreign Currency Convertible Bonds FCNR(B) - Foreign Currency Non-Resident (Bank) FER - Foreign Exchange Reserves FII - Foreign Institutional Investment/Investor FPI - Foreign Portfolio Investment FRN - Floating Rate Notes FRBM - Fiscal Responsibility and Budget Management G GDDS - General Data Dissemination Standards GDP - Gross Domestic Product GFC - Global Financial Crisis GNI - Gross National Income G-Sec - Government Securities I IBRD - International Bank for Reconstruction & Development (World Bank) ixICT - Information and Communication Technology IDA - International Development Agency/Association IDB - India Development Bonds IDR - International Debt Report IDS - International Debt Statistics IFAD - International Fund for Agricultural Development IFC(W) - International Finance Corporation (Washington, D.C.) IMD - Indian Millennium Deposit IMF - International Monetary Fund INR - Indian Rupee L LICs - Low Income Countries LMICs - Low- and Middle- Income Countries M MDBs - Multilateral Development Banks MIGA - Multilateral Investment Guarantee Agency MoF - Ministry of Finance N NDB - New Development Bank NFC - Non-Financial Corporation NPISHs - Non-Profit Institutions Serving Households NR(E)RA - Non-Resident (External) Rupee Accounts NRIs - Non-Resident Indians NRO - Non-Resident Ordinary Account xO OECD - Organisation for Economic Cooperation and Development ODA - Official Development Assistance OFC - Other Financial Corporation OGD - Other Government Debt OPEC - Organisation of the Petroleum Exporting Countries P PSUs - Public Sector Units PV - Present Value Q QEDS - Quarterly External Debt Statistics R RBI - Reserve Bank of India RIB - Resurgent India Bond S SDDS - Special Data Dissemination Standards SDLs - State Development Loans SDR - Special Drawing Rights SEBI - Securities and Exchange Board of India SED - Sovereign External Debt SLR - Statutory Liquidity Ratio SNA - System of National Accounts xiEXECUTIVE SUMMARY India's external debt position remained stable and sustainable in 2025-26. At end-March 2026, external debt stood at USD 762.8 billion, recording an increase of 3.6 per cent from USD 736.4 billion at end-March 2025. At end-March 2026, the external debt to GDP ratio stood at 20.8 per cent, while the foreign exchange reserves-to-external debt ratio was 90.6 per cent.

The Sovereign External Debt (SED), which accounted for about 22 per cent of total external debt, declined marginally by 0.6 per cent to USD 167.5 billion at end-March 2026 from USD 168.4 billion a year ago. Non-sovereign external debt, accounting for the remaining 78 per cent of the total external debt, increased by 4.8 per cent to USD 595.3 billion at end-March 2026.

In terms of maturity, long-term external debt accounted for 80.4 per cent of the total, while short- term debt constituted the remaining 19.6 per cent. The increase in short-term debt was largely driven by trade-related credit, which continued to dominate the composition of short-term liabilities. The predominance of long-term debt and the trade-related nature of short-term liabilities continued to contribute to the stability of India’s external debt profile.

Among borrower categories, non-financial corporations remained the largest holders of external debt with outstanding liabilities of USD 277.9 billion at end-March 2026, followed by deposit- taking corporations (USD 202.1 billion) and the general government (USD 167.5 billion). The access to foreign debt was primarily through loans, which accounted for 34.7 per cent of total external debt, followed by currency and deposits (22.3 per cent), trade credit (19.0 per cent) and debt securities (16.1 per cent). Commercial lenders remained the largest creditor group, accounting for 39.3 per cent of total external debt outstanding at end-March 2026, followed by NRI depositors (21.7 per cent).

In terms of currency composition, the US Dollar remained the largest component of India's external debt, accounting for 55.5 per cent of the total at end-March 2026. Indian rupee-denominated debt remained the second-largest component, with a share of 29.4 per cent, followed by the Japanese yen (6.4 per cent), the SDR (4.3 per cent), and the euro (3.7 per cent). The stock of concessional debt remained broadly unchanged, although its share in total external debt contracted to 6.7 per cent at end-March 2026.

Movements in exchange rates continued to influence the reported US dollar value of external debt.

During 2025-26, appreciation of the US dollar against major currencies generated valuation gains xiiof USD 24.6 billion. Excluding valuation effects, external debt would have increased by USD 51 billion during the year, instead of the observed increase of USD 26.3 billion. Thus, the strengthening of the US dollar also partly moderated the increase in the reported stock of external debt in USD terms.

Overall, India’s external debt vulnerability indicators remain benign. Adequate reserve cover, a predominance of long-term debt, moderate external debt ratios and prudent debt management policies continued to contribute to the sustainability of India’s external debt position. From a cross- country perspective, India’s external debt is modest. In terms of various external debt vulnerability indicators, India’s sustainability is better than that of the Low and Middle Income Countries

(LMICs) as a group and of many of them individually, as well as that of several G20 economies.

The overall assessment suggests that India’s external debt remains sustainable and resilient to external shocks. *** xiiiChapter 1 India’s External Debt – An Overview India's external debt position remains stable during 2025-26, supported by strong macroeconomic fundamentals and prudent external debt management. At end-March 2026, external debt stood at USD 762.8 billion, recording an increase of USD 26.3 billion (3.6 per cent) over its level a year earlier. The appreciation of the US dollar against the Indian rupee and other major currencies resulted in a valuation gain of USD 24.6 billion. Excluding the valuation effect, external debt would have increased by USD 51 billion during the year. The external debt-to-GDP ratio rose to 20.8 per cent at end-March 2026 from 19.8 per cent a year earlier. India's foreign exchange reserves remained adequate, covering 90.6 per cent of the outstanding external debt at end-March 2026, thereby providing an important buffer against external sector vulnerabilities.

1.1 This report documents the position of India’s external debt as at end-March 2026 and is organised into five chapters1. This Chapter presents an overview of India’s external debt and assesses key indicators of debt sustainability. Chapter 2 elaborates on the classification of India’s external debt – analysing it from the perspectives of sectors, debtors, creditors, currency, instruments, maturity, and concessionality, while Chapter 3 enumerates sovereign external debt in detail. Chapter 4 discusses debt service payments and debt service indicators, and Chapter 5 places India's external debt position in an international perspective, presenting cross-country comparisons with advanced economies and low- and middle-income countries.

1.1 OVERVIEW

1.2 India's external debt increased to USD 762.8 billion at end-March 2026 from USD 736.4 billion at end-March 2025, registering an increase of USD 26.3 billion (3.6 per cent). In rupee terms, the stock of external debt was estimated at ₹72.1 lakh crore, registering an increase of ₹9.1 lakh crore (14.4 per cent) over its level at end-March 2025 (Figure 1.1). The increase in India’s external debt during 2025-26 was primarily driven by higher outstanding loans and trade credits and advances.

India’s strong economic fundamentals have attracted inflows from commercial lenders and NRIs.

1 The analysis is based in terms of US Dollars. The data is presented in both US Dollars and Indian Rupees, where applicable, in the Annexures.

1Figure 1.1: Stock of India’s External Debt – US Dollar and Indian Rupees (at end-March) a) US Dollar b) Indian Rupee External Debt Stock External Debt Stock Growth Rate (Y-on-Y) - RHS 800 14 Growth Rate (Y-on-Y) - RHS 80 16 700 12 14 600 60 10 12 n500 8 e r 10 o o illiB D34 00 00 6 nec reP r C h k a40 68 c reP S 4t L20 e U200 .s 4tn R 2 100 2 0 0 0 0 -100 -2 -20 -2 8 9 0 1 2 3 4 5 6 8 9 0 1 2 3 4 5 6 1 1 2 2 2 2 2 2 2 1 1 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Source: RBI

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

1.3 Movements in the exchange rates of the US dollar against the currencies in which India's external debt is denominated result in changes in the reported US dollar value of the external debt stock. These changes are referred to as valuation effects. There were valuation gains of USD 24.6 billion in external debt at end-March 2026 over end-March 2025, due to the appreciation of the US dollar relative to the Indian rupee and the Japanese Yen. Without considering the valuation effect, India's external debt would have increased by USD 51 billion at end-March 2026, instead of USD

26.3 billion, over its level at the end-March 2025 (Figure 1.2).

Figure 1.2: External Debt and Valuation Effect (at end-March) External Debt including Valuation effect External Debt Excluding Valuation Effect Valuation Gain (+)/Loss(-) - RHS

24.6 800 25

20.6 700

16.7 16.6 20 600 500 11.7 15 n o illiB 34 00 00

8.7

5.3 10 B DSU D S U 200 5 noilli 100 0 0 -5 -100 -5.2 -6.8 2018 2019 2020 2021 2022 2023 2024 2025 2026 -200 -10

Source: RBI

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

21.2 KEY INDICATORS OF DEBT SUSTAINABILITY

1.2.1 External Debt-to-GDP Ratio

1.4 External Debt Sustainability is assessed on the basis of indicators of the external debt stock or external debt service relative to measures of repayment capacity (such as GDP). The external debt-to-GDP ratio (defined as the ratio of total outstanding external debt at the end of the year to annual GDP for that year) is a broad indicator of the external debt burden relative to the size of the economy and is widely used as a measure of external debt sustainability. At end-March 2026, the external debt to GDP ratio rose to 20.8 per cent from 19.8 per cent at end-March 2025 (Figure 1.3).

Figure 1.3: India’s External Debt and Debt-to-GDP ratio (at end-March) External Debt (USD Billion) Ratio of Total External Debt to GDP (%) (RHS) 800 25

20.9 21.1 700 20.1 19.9 20.0 19.6 19.2 20 600 20.8

19.8 n 500 o 15 illiB 400 c reP D e S 300 10tn U 200 5 100 529 543 558 574 619 624 669 736 763 0 0 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: RBI

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

1.2.2 Short-term Debt to Total External Debt

1.5 Short-term debt includes: (i) short-term trade credit up to 180 days as well as above 180 days and up to 1 year, (ii) Foreign Institutional Investor (FII) investments in Government Treasury Bills and corporate securities, (iii) investments by foreign central banks and international institutions in Treasury Bills, and (iv) external debt liabilities of central bank and commercial banks.

Short-term debt is considered a part of volatile capital flows. The management of short-term debt has been a part of overall external debt management since the early 1990s, with the policy to permit short-term debt mainly for trade-related credit. The share of short-term debt in total external debt stood at 19.6 per cent at end-March 2026 compared to 18.3 per cent at end-March 2025 (Figure

1.4).

3Figure 1.4: India’s Short-Term External Debt (at end-March) Short Term External Debt Ratio of Short term Debt to Total Debt (RHS) 160 25

19.6

20.6 140 19.3 20.0 19.1 19.7 19.1

17.6 18.3 20 120 n100 o 15 illiB 80 c reP D e S 60 10tn U 40 5 20 102 108 107 101 122 128 128 134 149 0 0 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: RBI

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

1.2.3 Foreign Exchange Reserves to Total External Debt

1.6 Foreign exchange reserves are maintained by countries both for financing international transactions and for facing unforeseen international payment difficulties. India's foreign exchange reserves stood at USD 691.1 billion at end-March 2026, covering 90.6 per cent of the country's external debt. While this was marginally lower than the 90.8 per cent recorded at end-March 2025, the reserve cover remained adequate. The ratio of short-term external debt to foreign exchange reserves also increased modestly from 20.1 per cent at end-March 2025 to 21.6 per cent at end- March 2026 during the same period (Figure 1.5).

Figure 1.5: Foreign Exchange Reserves to External Debt (at end-March) Ratio of Foreign Exchange Reserves to Total Debt Ratio of Short term Debt to Foreign Exchange Reserves (RHS) 120 30 24% 100 22% 22% 25 22% 26% 80 20 tn e c r e P60 18% 20% 20% 20% 15 tnec reP 40 10 20 5 80% 76% 86% 101% 98% 93% 97% 91% 91% 0 0 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: RBI

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

41.3 CONCLUSION

1.7 The marginal increase in external debt in 2025-26 was supported by adequate reserve buffers, favourable debt-sustainability indicators, and a prudent maturity profile due to the Government of India's prudent external debt management policy over the years. As a result, India's external debt position remained stable and sustainable despite a challenging global environment.

5Chapter 2 Classification of India’s External Debt This chapter analyses the trends in India’s external debt as classified according to sectors, debtors, creditors, currency, maturity, instruments and concessionality. Sovereign external debt (SED), accounting for about 22 per cent of the total external debt, decreased slightly by 0.6 per cent to USD 167.5 billion at end-March 2026 from USD 168.4 billion at end-March 2025. Non-sovereign external debt, accounting for about 78 per cent of the total external debt, grew at 4.8 per cent to USD 595.3 billion at the end-March 2026. The largest borrowers at end-March 2026 were non- financial corporations, with an outstanding external debt of USD 277.9 billion, marking a 6.4 per cent increase over the previous year. They were followed by deposit-taking corporations (excluding the central bank), whose external debt stood at USD 202.1 billion, broadly unchanged from the previous year. The general government accounted for USD 167.5 billion. Commercial lenders were the largest creditors, accounting for 39.3 per cent of the total external debt outstanding at the end of March 2026, followed by NRI depositors (21.7 per cent). External debt outstanding from multilateral organisations and bilateral countries increased by 0.6 per cent and 4.9 per cent, respectively. Short-term external debt, accounting for 19.6 per cent of total external debt, increased by 11 per cent to USD 149.2 billion at end-March 2026 from its level a year ago. Short-term external debt by residual maturity was USD 326.9 billion, higher than its level at USD 303.7 billion a year ago. However, the ratio of short-term debt by residual maturity basis to the total gross external debt increased to 42.9 per cent at end-March 2026 from 41.2 per cent a year ago. The US Dollar continued to be the largest component of India’s external debt, with a share of 55.5 per cent at end- March 2026. Indian Rupee external debt occupied second place after US Dollar external debt at end-March 2026, with the share of 29.4 per cent in total external debt, followed by yen (6.4 per cent), SDR2 (4.3 per cent) and euro (3.7 per cent). The ratio of concessional debt in total external debt outstanding contracted to 6.7 per cent at end-March 2026 from 6.9 per cent at end-March

2025.

2.1 This chapter provides a granular analysis of the composition of India’s external debt. India’s

external debt statistics are disseminated in two formats: (i) the old format, which classifies debt by 2 SDR: Special Drawing Rights 6broad creditor categories, and (ii) the new IMF format3, which organises it by debtor sectors, instruments and maturity. Drawing on these frameworks, the chapter examines India’s external debt across sectors, creditors, borrowers, instruments, currency, maturity, and concessionality.

2.2 Over the years, the size and composition of India's external debt have evolved in line with changes in the macroeconomic environment and the country's external debt management strategy.

The overarching philosophy that has guided the policy includes (i) gradual liberalisation of current account transactions eventually culminating in current account convertibility, (ii) gradual opening of capital account, preferring non-debt flows to debt flows, and (iii) a calibrated approach to External Commercial Borrowings (ECBs) as well as prudent reliance on short-term debt.

2.1 SECTOR-WISE CLASSIFICATION

2.3 India’s external debt can be classified into sovereign debt and non-sovereign debt. Sovereign debt includes (i) external debt outstanding on account of loans received by the Government of India under the “external assistance” programme, and civilian component of Rupee Debt; (ii) other Government debt comprising borrowings from IMF, defence debt component of Rupee debt as well as foreign currency defence debt and FII investments in Government Securities (Annex 1). Non- sovereign debt includes the remaining components of external debt.

2.4 As at end-March 2026, the outstanding of sovereign external debt (SED) marginally declined, while non-sovereign external debt (non-SED) increased compared to its level a year earlier. The outstanding SED decreased by 0.6 per cent to USD 167.5 billion at end-March 2026, from USD 168.4 billion at end-March 2025. Non-SED, estimated at USD 595.3 billion as at end- March 2026, increased by USD 27.3 billion (4.8 per cent) over the level a year ago (Figure 2.1). A detailed analysis of the general government’s external debt outstanding is presented in Chapter 3.

3 The concepts set out in the IMF’s External Debt Statistics (EDS) Guide 2013 are harmonized with those of the System of National Accounts (SNA) 2008 and the sixth edition of the IMF’s Balance of Payments and International Investment Position Manual (BPM6) published in 2009.

7Figure 2.1: India’s External Debt: Sovereign and Non-Sovereign (at end-March) SED Non-SED ED SED Gr Rate (RHS) Non-SED Gr Rate (RHS) 800 25 700 20 600 500 15 n o illiB 400 10 c reP D 300 e n S t U 200 5 100 0 0 -100 2020 2021 2022 2023 2024 2025 2026 -5

Source: RBI and Ministry of Finance.

Note: Gr – Growth; Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

2.2 CREDITOR-WISE CLASSIFICATION

2.5 Under the old format, the external debt data is classified into the following broad creditor

categories: multilateral, bilateral, IMF-SDR, trade credit, commercial borrowings, NRI deposits, rupee debt, and short-term debt.

2.6 Commercial lenders were the largest creditors, accounting for 39.3 per cent of total external debt outstanding at end-March 2026. They were followed by NRI depositors (21.7 per cent), short- term credit (19.6 per cent), multilateral lenders (10.6 per cent), and bilateral lenders (5.4 per cent).

Together, these five creditor groups accounted for 96.6 per cent of total external debt.

8Figure 2.2: Share of External Debt as at end March 2026: Creditor-wise Multilateral;

10.6% Short-term Debt;

19.6% Bilateral; 5.4% IMF; 2.9% Rupee Debt;

0.1% Trade Credit;

0.4% Non-resident Deposits; 21.7% Commercial Borrowings; 39.3%

Source: RBI and Ministry of Finance.

2.2.1 Official Creditors (Multilateral and Bilateral)4

2.7 The most commonly identified creditors are official creditors, which include multilateral organisations and bilateral individual countries. External debt outstanding from multilateral organisations increased marginally by 0.6 per cent to USD 81.1 billion at end-March 2026 compared to USD 80.6 billion at end-March 2025. Additionally, external debt outstanding from bilateral countries increased by 4.9 per cent to USD 41.1 billion during the same period.

4 Information on official creditors is available on the website of Aid Accounts and Audit Division, DEA

https://caaa.gov.in/ 9Table 2.1: India's External Debt: Creditor-wise (USD Billion) Percentage Absolute Variation Variation Mar- Mar- Mar- Item Mar-25 Mar-26 Mar-25 Mar-26 2024 2025 2026 over over over over Mar-24 Mar-25 Mar-24 Mar-25

(1) (2) (3) (4) (5) (6) (7) (8) I. Multilateral 77.9 80.6 81.1 2.6 0.5 3.4 0.6 II. Bilateral 35.2 39.1 41.1 3.9 1.9 11.2 4.9 III. International Monetary Fund 21.9 22.0 22.4 0.1 0.5 0.4 2.1 IV. Trade Credit 2.9 3.1 2.9 0.1 -0.2 5.0 -6.0 V. Commercial Borrowing 250.6 291.7 299.7 41.1 8.0 16.4 2.7 VI. NRI deposits 151.9 164.7 165.7 12.8 1.0 8.4 0.6 VII. Rupee Debt 0.9 0.8 0.7 0.0 -0.1 -5.5 -9.3 VIII. Short Term Debt 127.6 134.5 149.2 6.9 14.7 5.4 11.0 Total External Debt (I to VIII) 668.9 736.4 762.8 67.5 26.3 10.1 3.6

Memo Items:

A. Total Long Term Debt 541.3 601.9 613.5 60.6 11.6 11.2 1.9 B. Total Short Term Debt 127.6 134.5 149.2 6.9 14.7 5.4 11.0

Source: RBI and Ministry of Finance.

Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

2.2.2 Debt from International Monetary Fund (SDR)

2.8 The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries. The debt outstanding from the IMF is detailed in para 2.35.

2.2.3 Trade Credits

2.9 Trade credits/export credits refer to loans and credits extended for imports directly by overseas suppliers, banks, and financial institutions. If such credit is extended by the overseas suppliers in the form of deferred payment, it is “suppliers’ credit”. On the other hand, buyer’s credit refers to loans for the repayment of imports into India arranged by the importer from a bank or financial institution outside India. As these liabilities arise from transactions in goods and services rather than financial flows, they are classified separately under trade credits and advances. While trade credits are predominantly short-term, they are classified into short-term (with an original maturity of 1 year or less) and long-term (with an original maturity of more than 1 year and up to 3 years) categories.

102.10 Short-term trade credit accounted for 98.0 per cent of total external trade credit and 96.5 per cent of short-term external debt at end-March 2026 (Figure 2.3). Reflecting the increase in merchandise imports during 2025-26,5 outstanding trade credit rose by 10.2 per cent over the year.

Given that bank-financed trade credits are predominantly short-term, self-liquidating, and backed by underlying trade receivables, they generally pose lower rollover and credit risks than other forms of cross-border borrowing/lending.

Figure 2.3: Long-term and Short-term trade credit (at end-March) Long-Term Trade Credit Short-Term Trade Credit 160 140 120 n100 o illiB 80 D S 60 U 40 20 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: RBI

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

2.2.4 Commercial Borrowings

2.11 Commercial borrowings include commercial loans, commercial borrowings raised through the issue of securities/bonds, FPI investment in long-term corporate and government securities, securitised borrowings of commercial banks and loans/securitized borrowings, etc., with multilateral/bilateral guarantee and IFC(W). These borrowings are taken under the Foreign Exchange Management Act (FEMA). Official sources (multilateral and bilateral) also provide external finance on commercial terms. However, these finances are recorded in their corresponding creditors (“multilateral” and “bilateral”) categories. This category provides information on commercial borrowing from unofficial sources.

5 Merchandise imports rose in 2025-26 by 7.5 per cent (Ministry of Commerce’s press release dated April 15, 2026).

112.12 At end-March 2026, commercial borrowings increased by 2.7 per cent to USD 299.7 billion from their level a year ago. The main driver for increased commercial borrowings was an increase in commercial loans (11.4 per cent). In contrast, all other components of commercial borrowings declined during the period. (Figure 2.4).

Figure 2.4: Commercial Borrowings: Component-wise (at end-March) 300 Commercial loans 250

140.3 156.3 FPI 200 n o illiB150 Borrowings through D securities/bonds S U 77.8 72.8 100 Banks' securitised borrowings 50 53.1 51.6 Borrowings with guarantee

20.5 19.0 and IFC(W) 0 2025 2026

Source: RBI.

Note: Data for the year 2025 is partially revised and 2026 is provisional.

2.2.5 Non-Resident Indians (NRI) Deposits

2.13 Data on non-resident accounts, viz., FCNR(B), NRE and NRO accounts, is reported by the banks which are authorised to deal with NRI deposits to the RBI. The outstanding balances of the repatriable deposits are included under external debt statistics. At end-March 2026, NRI deposits outstanding increased slightly by USD 1 billion (0.6 per cent) to USD 165.7 billion from its level a year ago. Among the three types of NRI deposit accounts, NRO deposits recorded the highest growth of 7.1 per cent, followed by an increase of 2.9 per cent in FCNR(B) deposits, while NR(E)RA deposits declined by 2.2 per cent year on year.

2.2.6 Rupee Debt

2.14 Rupee debt refers to the outstanding credit extended to India by the erstwhile Union of Soviet Socialist Republic (USSR). The debt is denominated in rupees and repayment of such debt 12is made primarily through the export of goods to Russia. At end-March 2026, total Rupee debt outstanding was USD 0.7 billion, of which 95.4 per cent is defence external debt.

2.3 DEBTOR-WISE CLASSIFICATION

2.15 In this sub-section, the data on India’s external debt is presented according to the IMF format (as per the IMF’s 2013 Guide format), classified by debtor sectors. The debtor sectors include (i) general government; (ii) central bank; (iii) deposit-taking corporations (except the central bank);

(iv) other sectors (including other financial corporations, non-financial corporations, and households and non-profit institutions serving households (NPISHs)); and (v) direct investment: intercompany lending. The debtor-wise classification of external debt is further disaggregated into short-term and long-term maturities, with each maturity category classified by instrument type (loans, debt securities, currency and deposits, trade credit and advances, SDR allocations, and other debt liabilities). India’s debtor-wise external debt, in IMF format, is presented in Table 2.2 below.

Table 2.2: India's External Debt: Debtor-wise (USD Billion, unless indicated otherwise) Sector/Instrument Mar Mar Variation 2025 2026 Absolute Per cent I. General Government 168.4 167.5 -0.9 -0.6 II. Central Bank 0.045 0.118 0.07 162.0 III. Deposit-Taking Corporations, except the Central Bank 202.2 202.1 -0.1 -0.1 IV. Other Sectors 330.8 355.9 25.1 7.6 IV.1. Other financial corporations 69.6 78.0 8.4 12.1 IV.2. Non-financial corporations 261.1 277.9 16.8 6.4 IV.3. Households and non-profit institutions

0.009 0.008 -0.001 -14.0 serving households (NPISHs) V. Direct Investment: Inter-company Lending 35.0 37.2 2.2 6.2 GROSS EXTERNAL DEBT POSITION (I to V) 736.4 762.8 26.3 3.6

Source: RBI and Ministry of Finance.

Note: Data for the year 2025 is partially revised and 2026 is provisional.

2.16 The largest borrowers were non-financial corporations, with an outstanding external debt of USD 277.9 billion at end-March 2026. Of this, 51.8 per cent was short-term trade credit used to finance imports, while the remaining 48.2 per cent was long-term debt, primarily in the form of loans raised through the ECB route and debt securities issued to FPI investors. The overall external debt of non-financial corporations rose by 6.4 per cent at end-March 2026 compared to the previous 13year, due to an increase of 10.6 per cent in short-term debt and a 2.3 per cent rise in long-term debt, the latter reflecting a 9.3 per cent increase in ECB loans.

2.17 The second largest borrowers were deposit-taking corporations, except the central bank, with an outstanding debt of USD 202.1 billion, of which over 97.7 per cent (USD 197.5 billion) was long-term, primarily in the form of NRI deposits (USD 165.7 billion).

2.18 The general government was the third largest borrower, with an outstanding external debt of USD 167.5 billion at end-March 2026. Almost all of this debt was long-term, consisting mainly of loans from multilateral and bilateral creditors (USD 105.2 billion) and foreign portfolio investments (FPI) in government securities (USD 39 billion). The overall stock of general government debt decreased marginally by 0.6 per cent compared to the previous year (Figure 2.5).

Figure 2.5: India’s External Debt: Debtor-wise (at end-March) NFC DTC General Government OFC DI Central Bank NPISHs 800 700 600

167.5

168.4 n500 148.7 o illiM400

202.1 D 186.8 202.2 S U300 200

252.7 261.1 277.9 100 0 2024 2025 2026

Source: RBI and Ministry of Finance.

Note: DI: Direct Investment: Inter-company lending; NPISH: Households and Non-profit Institutions serving Households (not visible due to small proportion of debt); NFC: Non-financial Corporations; OFC: Other Financial Corporations; DTC: Deposit Taking Corporations, except Central Bank.

Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

2.19 The external debt of the central bank was minimal (USD 0.1 billion) at end-March 2026, while that of households and NPISHs remained negligible. Inter-company lending under direct investment rose moderately by USD 2.2 billion (6.2 per cent y-o-y) (Table 2.2).

142.4 MATURITY-WISE CLASSIFICATION

2.20 The maturity composition of external debt is important because it can have a significant impact on liquidity. This section analyses total external debt by original and residual maturity.

Further, given its importance, the original maturity and residual maturity of short-term debt are also examined.

2.21 While a high level of short-term exposure may signal external sector vulnerability, a certain level of such short-term finance is essential to finance transactions and support economic activity.

The High-Level Committee on Balance of Payments (under the Chairmanship of Dr. C. Rangarajan) recommended that short-term debt should be permitted only for trade-related purposes and under normal terms.

2.4.1 Total External Debt by Original Maturity

2.22 The long-term external debt is estimated to be USD 613.5 billion, having grown by 1.9 per cent by the end of March 2026 compared to the previous year. Meanwhile, short-term external debt increased by almost 11 per cent, reaching USD 149.2 billion at the end of March 2026, up from its level at the end of March 2025. (Figure 2.6).

Figure 2.6: India’s External Debt: Maturity-wise (at end-March) Long-term External Debt Short-term External Debt 800 700

149.2 600 127.6

121.7 n o 500 102.2 106.9 illiB 400

83.5 D S U 300 613.5

541.3

497.4 200 401.3 427.1 451.4 100 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: RBI and Ministry of Finance.

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

152.23 The share of long-term external debt moderated to 80.4 per cent at end-March 2026 from

81.7 per cent a year earlier. Consequently, the share of short-term debt increased to 19.6 per cent from 18.3 per cent at end-March 2025 (Figure 2.7).

Figure 2.7: Share of Long-Term and Short-Term Debt (at end-March) Share of LT Debt Share of ST Debt 100%

17.2 19.1 19.6 80% 60% 40% 82.8 80.9 80.4 20% 0% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: RBI and Ministry of Finance.

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

2.4.1.1 Short-term debt by Original Maturity

2.24 When the period encompassing the precise time of creation of the external financial liabilities to its date of final maturity is less than one year, the outstanding amount is external short- term debt by original maturity. Short-term external debt increased by USD 14.7 billion (11 per cent) to USD 149.2 billion at end-March 2026 from its level at end-March 2025 (Figure 2.6).

Furthermore, the ratio of short-term debt to foreign exchange reserve increased from 20.1 per cent to 21.6 per cent during the period.

2.25 About 96.5 per cent of short-term external debt is trade-related credit. Other small components of short-term debts are Vostro balance and Nostro overdrafts of commercial banks (3.1 per cent), FPI investment in government treasury bills and other instruments (0.2 per cent), investment in treasury bills by foreign central banks and international institutions, etc. (0.2 per cent), and balances of foreign central banks/international institutions with RBI (0.1 per cent).

162.4.2 Total External Debt by Residual Maturity

2.26 The original maturity of external debt shows the nature of capital flows. In contrast, external debt compiled on the basis of residual maturity is useful for assessing debt-servicing obligations during the year under review and for determining the requirement for foreign exchange reserves to facilitate effective cash flow management.

2.27 Analysis of total external debt by residual maturity reveals that at the end of March 2026, short-term debt by residual maturity of up to one year occupies a major share (42.9 per cent) in total external debt, followed by debt maturing in more than three years (36 per cent). The share of external debt maturing in 1-2 years and 2-3 years in total external debt was 11.9 per cent and 9.2 per cent, respectively at end-March 2026 (Figure 2.8).

Figure 2.8: India’s External Debt at end-March 2026: Residual Maturity-wise More than 3 Short-term up years to one year

36.0%

42.9% 1 to 2 years 2 to 3 years 11.9%

9.2%

Source: RBI

2.28 The non-financial corporations have the highest share in short-term external debt by residual maturity, mainly due to short-term trade credit. This is followed by deposit-taking corporations except the central bank (commercial banks), mainly due to non-resident Indian deposits maturing within a one-year period. The non-financial corporation and deposit-taking corporation together accounted for 90.7 per cent of short-term external debt on a residual maturity basis. On the other hand, general government accounts for over 47.9 per cent of the stock of external debt maturing beyond three years (Figure 2.9).

17Figure 2.9: Composition of short-term debt by residual maturity: Sector-wise (at end-March 2026) 180 Short-term debt Long-term debt falling due in one year 160 140 120 n o illiB100 D 80 S U 60 40 20 0 NFC Commercial Banks OFC Government Central Bank

Source: RBI

Note: OFC- Other Financial Corporations; NFC- Non-financial Corporations.

Table 2.3: Residual Maturity of External Debt Outstanding as at end-March 2026 (USD Billion) Short- Long-term Total term up 1 to 2 2 to 3 More (2 to 5) Sector to one years years than 3 year years

(1) (2) (3) (4) (5) (6) I. General Government 10.4 11.9 13.5 131.6 167.5 II. Central Bank 0.1 0.0 0.0 0.0 0.1 III. Deposit-Taking Corporations, except the Central Bank 127.7 33.9 9.1 31.4 202.1 IV. Other Sectors 180.5 39.5 42.3 93.7 355.9 IV.1. Other financial corporations 11.5 20.7 19.4 26.4 78.0 IV.2. Non-financial corporations 168.9 18.8 22.9 67.4 277.9 IV.3. Households and nonprofit institutions serving households (NPISHs) 0.0 0.0 0.0 0.0 0.0 V. Direct Investment: Inter-company Lending 8.1 5.6 5.3 18.2 37.2 Total External Debt 326.9 90.8 70.1 275.0 762.8

Memo Items:

Short-term Debt (residual maturity) as per cent of Total External Debt 42.9 Short-term Debt (residual maturity) as per cent of Foreign Exchange Reserves 47.3 *: Short-term debt by residual maturity comprises long-term debt by original maturity falling due over the next twelve months and short-term debt by original maturity.

Source: RBI.

182.4.2.1 Short-term debt by Residual Maturity

2.29 Short-term debt by residual maturity refers to principal repayments due under all loans and credits (both long-term and short-term) in one year or less. It comprises all the components of short- term debt with original maturity of one year or less, and repayments due under medium & long- term debt by original maturity during the one-year reference period (Annex X). At end-March 2026, short-term external debt by residual maturity was USD 326.9 billion, higher than its level at USD

303.7 billion at end-March 2025. The ratio of short-term debt by residual maturity basis to the total external debt increased to 42.9 per cent at end-March 2026 from 41.2 per cent a year ago. Similarly, the ratio of short-term external debt to foreign exchange reserve rose to 47.3 per cent from 45.4 per cent during the period.

2.5 CURRENCY-WISE CLASSIFICATION

2.30 The currency composition of external debt is important for monitoring an economy’s potential vulnerability to exchange rate, solvency and liquidity risk.

2.31 Foreign currency debt is defined as debt in which the value of flows and positions is fixed in a currency other than the domestic currency.6 Exchange rate fluctuations can increase or decrease borrowing costs, impacting the value of foreign-currency-denominated debt obligations. At end- March 2026, US dollar-denominated debt remained the largest component of India's external debt, accounting for 55.5 per cent of the total external debt. Indian rupee-denominated external debt remained the second-largest component; however, its share of total external debt moderated to 29.4 per cent at end-March 2026, from 31.0 per cent a year earlier (Figure 2.10).

6 External Debt Statistics: Guide for Compilers and Users, IMF 19Figure 2.10: Share of foreign currency & INR debt in total external debt (%) (at end-March) Share of Foreign Currency debt in Total ED Share of INR debt in Total ED 80

72.2% 70.6% 70 66.1% 60 tn e c50 r e P 40

33.9%

29.4%

27.8% 30 20 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: QEDS, World Bank

2.32 Japanese Yen denominated debt with its ratio of 6.4 per cent occupies third place after the US Dollar and Rupee-denominated external debt at end-March 2026. These were followed by SDR (4.3 per cent) and Euro (3.7 per cent) denominated debt (Figure 2.11).

Figure 2.11: India’s External Debt – Currency Composition (at end-March) 2024 2025 2026 60 55.5 50 40 tn

29.4 e c 30 r e P 20 10 6.4

4.3 3.7

0.5 0.3 0 US Dollar Indian Rupee Japanese Yen SDR Euro Others Pound Sterling

Source: RBI and Ministry of Finance

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

202.6 INSTRUMENT-WISE CLASSIFICATION

2.33 Instrument-wise classification of external debt in terms of bonds, loans, trade credits & advances and deposits along with borrower details describes the mix of instruments through which debtors gain access to external financing. At end-March 2026, access to foreign debt by the debtors is primarily in the forms of loans accounting for 34.7 per cent (including multilateral, bilateral credits and bank loans), followed by currency & deposits (22.3 per cent), trade credit (19 per cent), debt securities (16.1 per cent), direct investment-intercompany lending (4.9 per cent), and SDR (2.9 per cent) (Figure 2.12).

2.34 At end-March 2026, external financing was raised primarily through loans, which accounted for 34.7 per cent of total external debt (including multilateral and bilateral credits and bank loans), followed by currency and deposits (22.3 per cent), trade credit (19.0 per cent), debt securities (16.1 per cent), direct investment (intercompany lending) (4.9 per cent), and SDR allocation (2.9 per cent) (Figure 2.12).

Figure 2.12: India’s External Debt as at end-March 2026 – Instrument-wise SDRs 2.9% Direct Investment 4.9% Debt securities 16.1% Trade credit and advances 19.0% Currency and deposits 22.3% Loans 34.7%

Source: RBI

2.6.1 Special drawing rights (SDRs)

2.35 Special Drawing Rights (SDRs) are international reserve assets created by the IMF and allocated to member countries to supplement their official foreign exchange reserves. Under 21international statistical standards, SDR allocations are treated as long-term external debt liabilities and are therefore included in gross external debt, while SDR holdings are recorded as reserve assets.

Unlike conventional external borrowing, SDR allocations do not involve a contractual repayment schedule and generally do not have the same implications for debt sustainability.7 At the end of March 2026, India’s SDR holdings and corresponding liabilities to the rest of the world were USD

22.4 billion, accounting for 2.9 per cent of the total external debt outstanding.

2.6.2 Currency and Deposits

2.36 At end-March 2026 external debt outstanding under currency and deposits was USD 170.4 billion, higher by 1.7 per cent than its level a year ago. About 22.3 per cent of external debt outstanding at end-March 2026 was in the form of currency and deposits. Non-resident Indians

(NRI) deposits are the only long-term deposits recorded under this class and accounted for about

97.2 per cent of total external debt outstanding under this tool. Vostro balance and Nostro overdrafts of commercial banks and balances of foreign central banks/international institutions with RBI are the short-term deposits.

2.6.3 Loans

2.37 According to the IMF, loans are financial assets created through the direct lending of funds by a creditor to a debtor through an arrangement in which the lender either receives no security evidencing the transactions or receives a non-negotiable document or instrument.8 Unlike debt securities, loans are not intended for negotiability, and their non-negotiable nature distinguishes them from securities.9

2.38 The bulk of external debt was in the form of loans (34.7 per cent at end-March 2026). At end-March 2026, the total external loan outstanding was USD 264.9 billion, USD 14.3 billion (5.7 per cent) higher than its level a year ago.

7 IMF’s Guidance Note for Fund Staff on the Treatment and Use of SDR Allocations (August 2021).

8 External Debt Statistics: Guide for Compilers and Users, 2003.

9 Note: If a loan becomes negotiable, it is reclassified as a debt security.

222.39 Commercial loans and external assistance by official creditors are the major component of external loans. Other components are securitized borrowings of commercial banks and external defence debt. Commercial loans have increased by USD 14.3 billion, followed by external assistance (USD 1.5 billion). On the other hand, the securitized borrowings of the commercial banks decreased by USD 1.5 billion while loans under defence external debt decreased by USD 0.07 billion.

2.6.4 Trade Credit and Advances

2.40 Trade credit and advances refer to the credit extended for imports directly by overseas suppliers, banks and financial institutions. However, the ‘trade credit and advances’ as an instrument (in IMF format) differ from the “trade credit” in the creditor-wise classification. In particular, long- term loans for the repayment of imports into India, arranged by the importer from a bank or financial institution outside India (buyers’ credit), are recorded under “loan” rather than 'trade credits and advances'.

2.41 Trade credits and advances, which are predominantly of short-term maturity, increased by USD 13.7 billion (10.4 per cent) to USD 144.9 billion at end-March 2026 from USD 131.2 billion at end-March 2025. They accounted for 19.0 per cent of India's total external debt at end-March

2026.

2.6.5 Debt Securities

2.42 A debt security is a negotiable financial instrument. Negotiability refers to the fact that its legal ownership can be readily transferred from one owner to another by delivery or endorsement.

Debt securities constitute 16.1 per cent of total external debt and include FPI investment in long- term corporate and government securities, commercial borrowings raised through issue of securities/bonds, and a small amount of investment in Treasury Bills by foreign central banks and international institutions etc. At end-March 2026, total external debt in the form of debt securities decreased to USD 123 billion from USD 130.1 billion a year ago.

232.6.6 Direct Investment: Inter-Company lending

2.43 In the presentation of the institutional sector-wise gross external debt position in Statement I, intercompany lending between entities in a direct investment relationship is presented separately because the nature of the relationship between debtor and creditor is different from that for other debt.10 At end-March 2026, outstanding external debt under this instrument was USD 37.2 billion compared to USD 35 billion a year ago.

2.7 CONCESSIONALITY-WISE CLASSIFICATION

2.44 Softer terms of a loan in relation to prevailing market conditions indicate concessionality.

Concessionality of external finance could be reflected in terms of a lower rate of interest, elongation of maturity or repayment periods, etc. and is measured by the difference between the face value of the credit and the sum of the discounted future debt service payments. Different multilateral institutions follow different norms for classifying credits into concessional and non-concessional.

In India, loans from a few multilateral institutions, such as the International Development Association (IDA), the International Fund for Agricultural Development (IFAD), and the Organisation of Petroleum Exporting Countries (OPEC), which have long maturities and relatively low interest rates/service charges, are treated as concessional. The loans from other multilateral sources, such as the International Bank for Reconstruction and Development (IBRD), Asian Development Bank (ADB), etc., however, are extended on terms close to market rates and are, therefore, classified as non-concessional.

2.45 At end-March 2026, about 18.5 per cent of multilateral loans extended to the government were on concessional terms, primarily from IDA, IFAD, and OPEC. All borrowings from bilateral sources (except dollar-denominated debt from Russia) are classified as concessional, with around

43.6 per cent of bilateral loans to the non-government sector also carrying concessional terms.

Rupee debt, which is serviced through exports, is also treated as concessional. Overall, about 28.4 per cent of the government’s outstanding external debt was concessional at end-March 2026.

2.46 At end-March 2026, the outstanding stock of concessional debt stood at USD 51.1 billion, broadly unchanged from end-March 2025. The share of concessional debt in total external debt, 10 External Debt Statistics: Guide for Compilers and Users, 2003.

24however, contracted to 6.7 per cent at end-March 2026 from 6.9 per cent a year earlier, marking the lowest level in the past decade (Figure 2.13).

Figure 2.13: India’s External Debt: Concessional and Non-Concessional (at end-March) Concessional Debt Non Concessional Debt Share of concessional debt - RHS Growth Rate of concessional debt - RHS 10 800 8 600 6 n o illiB400 24 nec reP D200 t S U 0 0 -2 -200 -4 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: RBI

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

2.8 CONCLUDING OBSERVATION

2.47 This chapter analysed India's external debt across different classifications. At end-March 2026, the outstanding external debt of the general government declined marginally, while that of the non-government sector increased compared with end-March 2025. Among creditor categories, commercial lenders continued to account for the largest share of outstanding external debt, followed by NRI deposits.

25Chapter 3 Sovereign External Debt The outstanding Sovereign External Debt (SED) decreased by 0.6 per cent to USD 167.5 billion at end-March 2026 from USD 168.4 billion at end-March 2025. Under the external assistance programme, the multilateral debt of the government rose by 1.4 per cent to USD 70.7 billion from USD 69.7 billion a year ago, while the bilateral debt of the government increased by 7.0 per cent to USD 34.5 billion as at end March 2026 from USD 32.2 billion a year ago. At end-March 2026, Other Government Debt (OGD) stood at USD 62.3 billion, a decline of USD 4.2 billion (6.3 per cent) from its level at end-March 2025, mainly due to reduced FPI investment in G-Secs. US dollar- denominated debt had the largest share (37.3 per cent). However, decreased FPI investment in government dated securities has resulted in decreased share (23.8 per cent) of Indian Rupee denominated debt in SED at end-March 2026 compared to its level (26.5 per cent) a year ago. Total SED service payment during 2025-26 decreased by 1.8 per cent to USD 11.0 billion compared to USD 11.2 billion during 2024-25. The SED service payment during the current year (2026-27) is projected to increase to USD 18.0 billion.

3.1 INTRODUCTION

3.1 The present chapter provides a detailed analysis of the country’s Sovereign External Debt

(SED), its creditor-wise composition, currency composition, SED service payments, explicit contingent liabilities of the Government and SED service projections. The SED consists of (i) External Debt outstanding on account of multilateral and bilateral loans received by the Government of India under the “external assistance” programme and civilian component of Rupee Debt, and (ii) Other Government Debt (OGD) comprising borrowings from the IMF (SDRs), defence debt component of Rupee Debt, as well as foreign currency defence debt and FPI investment in G-secs.

3.2 The SED outstanding declined by 0.6 per cent to USD 167.5 billion at end-March 2026 from USD 168.4 billion at end-March 2025. In terms of ratio to GDP, SED increased marginally from

4.5 per cent to 4.6 per cent during the same period. Figure 3.1 shows that the share of SED in total external debt was 22.0 per cent at end-March 2026.

26Figure 3.1: Sovereign External Debt: Stock and Share Sovereign External Debt (USD Billion) SED (as a % of Total ED)

22.9 180 22.2 22.0 24

21.1 21.4 160 19.1 19.5 21

17.9 140 18 120 n 15 o illiB 100 12 c reP D 80 e n S U 9 t 60 6 40 20 3

103.9 100.9 111.6 130.8 133.3 148.7 168.4 167.5 0 0 2019 2020 2021 2022 2023 2024 2025 2026

Source: RBI, CAAA and CCIL.

Note: Data pertains to end-March.

Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

3.3 The Central Government debt in India is raised predominantly from domestic investors.

The share of external debt in total Government debt has gradually declined. The share of external liabilities in central government total liabilities has significantly reduced from 16.3 per cent in FY 2000 to 4.5 per cent in FY 202611,12. The low share of external debt helps insulate the Government's debt portfolio from currency risk.

3.2 COMPOSITION OF SOVEREIGN EXTERNAL DEBT

3.4 SED outstanding is dominated by loans taken from multilateral agencies and bilateral countries under external assistance, along with Foreign Portfolio Investments (FPI) in government securities. Debt taken from multilateral agencies has the highest share (42.2 per cent) in total SED, followed by debt securities (23.4 per cent) and loans from bilateral countries (20.6 per cent) (Figure

3.2).

11 Table 104, Handbook of Statistics on the Indian Economy (2025-26), RBI 12 Data for 2025-26 are Revised Estimates and data for 2026-27 are Budget Estimates.

27Figure 3.2: Components of Sovereign External Debt (at end-March 2026) Defence

0.4% SDR

13.4% Multilateral

42.2% Bilateral

20.6% Debt Securities

23.4%

Source: CAAA, RBI, CCIL and Ministry of Defence.

3.2.1 External Assistance

3.5 Under the external assistance programme, the borrowings are mainly from multilateral and bilateral sources, which are long-term in nature. As at end-March 2026, the multilateral debt of the government rose by 1.4 per cent to USD 70.7 billion from USD 69.7 billion a year ago, while the bilateral debt of the government increased by 7.0 per cent to USD 34.5 billion as at end-March 2026 from USD 32.2 billion a year ago. Multilateral sources have consistently dominated external debt on the Government Account under external assistance (Figures 3.3a and 3.3b).

Figure 3.3: Composition of Sovereign External Debt under External Assistance a) Debt under External Assistance b) Relative Contribution to Growth in Debt (at end-March) under EA (at end-March) Multilateral Debt Bilateral Debt Bilateral 80 Multilateral 14 Total Growth in EA 70 12 60 10 n50 o illiB D40 n o illiB68 S30 D U S4 U 20 2 10 0 0 -2 6 7 8 9 0 1 2 3 4 5 6 1 1 1 1 2 2 2 2 2 2 2 6 7 8 9 0 1 2 3 4 5 6 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2

Source: CAAA

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

283.6 The contribution of external assistance in overall SED (including dated securities held by FIIs) has been declining over the long-term horizon. However, during the pandemic, the share of external assistance went up sharply due to additional borrowing by the Government in view of the severe impact of COVID-19 on the Indian economy and Government finances. At the end of March 2026, the share of external assistance in total SED stood at 62.8 per cent (Figure 3.4).

Figure 3.4: External Assistance vs Other Government Debt (at end-March) Debt under External Assistance Other Government External Debt % Share Ext. Assist. In SED (RHS) % Share of Other Gov. Debt in SED (RHS) 120 80 70 100 60

62.8% 80 n 50 o illiB 60 40 tn e c D r e S U 30 P 40 20 20 10 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: CAAA, CCIL, RBI.

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

3.2.1.1 Multilateral Debt

3.7 External debt outstanding from multilateral agencies was USD 70.7 billion at the end of March 2026, higher by USD 1 billion (1.4 per cent) over its level a year ago. The Asian Development Bank (ADB), with a total outstanding of USD 23.5 billion, had the largest share (33.2 per cent) in overall external debt outstanding from multilateral agencies. This was followed by the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Loans from both ADB and IBRD are non-concessional (Figure 3.5).

29Figure 3.5: Composition of Multilateral debt (at end-March) ADB IBRD IDA AIIB NDB Others (including EIB, IFAD etc.) 2026 2 .3 3 5 .0 3 7 .7 1 9 .7 8 .6 8 .3 2025 8 .2 3 4 .0 3 7 .0 2 9 .6 2 .6 0 .3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: CAAA

Note: Data for the year 2025 is partially revised and 2026 is provisional.

3.8 The IBRD, with a share of 30.5 per cent, remained the second largest source, reflecting India’s continued reliance on World Bank funding through IBRD for development projects. In contrast, outstanding debt from IDA contracted by 13.3 per cent during the year, reflecting the gradual repayment of existing IDA loans, with no new borrowing since India graduated from IDA eligibility in FY14.13 (Figures 3.5 and 3.6).

Figure 3.6: Relative contribution of different Multilateral Organisations in the growth of Debt under External Assistance (at end-March) ADB IBRD IDA AIIB NDB Others (including EIB, IFAD etc.) 30 25 23.5 20 n o illiB 15 D S U 10 5 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: CAAA

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

13 IDA, World Bank: https://ida.worldbank.org/en/about/borrowing-countries/ida-graduates

303.9 External debt outstanding from other multilateral agencies, such as Asian Infrastructure Investment Bank (AIIB) (7.9 per cent), New Development Bank (NDB) (6.8 per cent), European Investment Bank (EIB) (3.0 per cent) and International Fund for Agriculture Development (IFAD) (0.7 per cent) had a smaller share in total external debt outstanding from multilateral agencies.

However, external debt outstanding from these agencies has been increasing over the years.

3.2.1.2 Bilateral Debt

3.10 External Debt outstanding from bilateral creditors was USD 34.5 billion at end-March 2026, higher by USD 2.3 billion over its level a year ago. Japan remains the largest creditor to India, with debt outstanding of USD 24.3 billion. This accounts for 70.3 per cent of the total external debt from all bilateral creditors, lower than its share of 72.3 per cent at the end of March 2025. Russia, the second largest creditor after Japan, holds a share of 14.1 per cent, up from 13.6 per cent in the previous year. The share of external debt sourced from Germany increased from 9.6 per cent to 10.6 per cent, while France’s share rose from 4.1 per cent to 4.7 per cent between 2025 and 2026.

Figure 3.7: Composition (% Share) of Bilateral Debt (at end-March) Japan Russia Germany France Others (incl. USA & Korea) 3 1 6 3 2026 .0 7 .4 1 .0 1 7 .4 .0 2025 3 .2 7 6 .3 1 6 .9 1 .4 4 .0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: CAAA

Note: Data for the year 2025 is partially revised and 2026 is provisional.

313.2.2 Other Government Debt (OGD)

3.11 Internal debt of the Central Government consists of marketable securities (74.5 per cent) and non-marketable securities (25.5 per cent).14 Some of these securities are held by Foreign Institutional Investors. The securities held by FIIs combined with defence external debt and borrowing from IMF are known as other government external debt (OGD). The OGD is added to the government's external debt under external assistance to estimate the government’s gross external debt outstanding. At end-March 2026, OGD stood at USD 62.3 billion, a decline of USD 4.2 billion (6.3 per cent) from its level at end-March 2025, mainly due to decline in FPI investment in G-Sec.

(Figure 3.8) (Annexure XII) Figure 3.8: Composition of Other Government Debt (at end-March) 2025 2026 45 40 35 30 n o illiB 25 D 20 S U 15 10 5 0 Debt Securities (FII) SDR Defence

Source: CCIL, RBI and Ministry of Defence

Note: Data for the year 2025 is partially revised and 2026 is provisional.

3.2.2.1 FII in G-Sec

3.12 Outstanding FPI investment in government dated securities was 63 per cent of other government external debt at end March 2026. At end-March 2026, FII investment in dated securities decreased by 10.5 per cent to USD 39.3 billion from its level of USD 43.9 billion at end-March

2025.

14 Quarterly Report on Public Debt Management, January-March 2026, Budget Division, DEA

323.2.2.2 Special Drawing Rights (SDR)

3.13 SDR accounts for 36.0 per cent of OGD. At end-March 2026, total outstanding under IMF borrowing (SDR) was USD 22.4 billion.

3.2.2.3 Defence External Debt

3.14 Defence debt is a minuscule part of OGD. At end-March 2026 total defence external debt outstanding was USD 0.6 billion which accounted for less than 1 per cent of OGD.

3.3 CURRENCY COMPOSITION

3.15 Decreased FPI investment in government dated securities has resulted in decreased share (23.8 per cent) of Indian Rupee-denominated debt in SED at end-March 2026 compared to its level (26.5 per cent) a year ago. The largest component was US dollar-denominated debt, with a share of

37.3 per cent, up from 35.8 per cent a year ago. The share of other currencies, such as Japanese Yen and Euro, increased marginally. (Figure 3.9) (Annexure XIII) Figure 3.9: Currency composition (% Share) of Sovereign External Debt (at end-March) 2025 2026 40 37.3

35.8 35 30

26.5

23.8 25 tn 20

19.4 e c20 r e 15 P 14.1 15 10

3.6 4.4 5 0 US Dollar Indian Rupee SDR Japanese Yen Euro Pound Others sterling

Source: RBI.

Note: Data for the year 2025 is partially revised and 2026 is provisional.

333.4 SOVEREIGN EXTERNAL DEBT SERVICE PAYMENTS

3.16 Total sovereign external debt service payments during 2025-26 declined by 1.8 per cent to USD 11.0 billion compared to USD 11.2 billion during 2024-25. A major share (94.7 per cent) of this payment is for debt service on external debt under the government account, i.e., debt service payments to multilateral and bilateral agencies. The remainder is for debt service payments to FPI investors, with a minuscule amount for the defence external debt. The time-series data on sovereign debt service payments are presented in Annex XIV.

3.17 Debt service payments to multilateral agencies increased marginally by 0.2 per cent to USD

8.8 billion in 2025-26. The Asian Development Bank (ADB) continued to receive the highest debt service payments among multilateral creditors, despite a 1 per cent decline to USD 2.9 billion. This was followed by payments to the International Development Association (IDA), the International Bank for Reconstruction and Development (IBRD), and the Asian Infrastructure Investment Bank

(AIIB), which together amounted to USD 5.4 billion.

Figure 3.10: Multilateral Debt Service Payments (at end-March) ADB IDA IBRD Others (incl. AIIB, NDB etc.) 10

1.1 8

2.5 n o 6 illiB D S 4 2.4 U 2

2.9 0 2022-23 2023-24 2024-25 2025-26

Source: CAAA

Note: Data for the year 2024-25 is partially revised and 2025-26 is provisional.

3.18 Debt service payments to bilateral countries declined by 2.5 per cent to USD 1.6 billion during the same period. While debt service payments to Japan, the government’s largest bilateral creditor, declined by 5.2 per cent in 2025-26 compared with the previous year, payments to Germany and France increased by 10.2 per cent and 13.2 per cent, respectively.

34Figure 3.11: Bilateral Debt Service Payments (at end-March) Japan Germany Others (incl Russia, France, USA etc.)

1.6

0.3

1.2 n 0.4 o illiB D 0.8 S U

0.9

0.4

0.0 2022-23 2023-24 2024-25 2025-26

Source: CAAA

Note: Data for the year 2024-25 is partially revised and 2025-26 is provisional.

3.19 Debt service payments on OGD, primarily held by FPI investors, declined by 24.1 per cent to USD 0.6 billion in 2025-26 compared to 2024-25. The debt service payments of SED are presented in Annexure XIV, and external debt service payments of SED on the Government account under external assistance are presented in Annexure XV.

3.5 CONTINGENT LIABILITY

3.20 Contingent liabilities refer to such legal obligations that may fall on the borrower if the borrower defaults on the payment of principal and/or interest of a credit. Sovereign external contingent liabilities relate to guarantees provided by the Government of India for specific loans raised by the non-Government sector from non-residents. The magnitude of contingent liabilities is regularly monitored in terms of their implications for overall macroeconomic and financial liabilities.

3.21 The government guarantee of external debt of the non-government sector declined by 16.9 per cent to USD 8.1 billion at end-March 2026 over its level a year ago.

35Figure 3.12: Government Debt and Government Guaranteed Debt (at end-March) Government Debt Government Guaranteed Debt

9.8 8.1 180

10.4 160

11.4 11.0 140

10.5 11.7

11.4 120 10.2 11.5 n 10.1 o illiB100 D 80 168.4 167.5 S 148.7 U 130.8 133.3 60

111.9 111.6

93.6 95.8 103.8 100.9 40 20 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: CAAA, RBI, SEBI and CCIL.

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

3.22 The Government of India provides guarantees on a selective basis for external borrowings by public sector enterprises and development financial institutions, though guarantees for external commercial borrowing are discouraged. In addition, there is no government-guaranteed debt pertaining to the private sector (non-financial).

Figure 3.13: Government Guaranteed External Debt of debtor sectors (at end-March) Financial Sector Public Sector 12 10 8 n o 8.0 i l 7.6 l i B 6 7.5 D 5.9 S U 4 2

3.1 2.8

2.3 2.2 0 2023 2024 2025 2026

Source: CAAA, RBI, SEBI and CCIL.

Note: Data for the year 2024 is revised; 2025 is partially revised and 2026 is provisional.

363.23 Government guaranteed external debt as a ratio to non-government external debt, as well as total external debt, has been on a declining trend over the last few years. At end-March 2026, the ratio of government-guaranteed debt to non-government debt declined to 1.4 per cent from 1.7 per cent a year ago. Similarly, the ratio of government-guaranteed external debt to total external debt declined to 1.1 per cent from 1.3 per cent during the period.

3.6 PROJECTIONS OF SOVEREIGN EXTERNAL DEBT SERVICE PAYMENTS

3.24 The projection related to the debt service payments on government (sovereign) external debt is presented in Annex XVII. The projection provides information on the expected amounts and timing of future principal repayments and interest payments. The monitoring of the debt-service payment schedule for the SED is essential for debt management strategy and to ensure that payments are made on a timely basis.

3.25 The debt service payment for government debt is projected to increase to USD 18.0 billion in 2026-27, comprising principal repayment of USD 10.2 billion and interest payment of USD 7.8 billion (Table 3.1) (Annex XVII).

Table 3.1: Projections of Sovereign External Debt Service Payments: Creditor-wise (USD Billion) Component 2026-27 2027-28 2028-29 2029-30 Beyond 2029-30 Multilateral 11.5 10.5 10.8 11.0 65.5 Multilateral share in total (%) 63.8 57.3 54.7 58.8 47.1 Principal 6.8 6.9 7.2 7.6 42.2 Interest 4.7 3.6 3.6 3.4 23.4 Bilateral 2.0 2.1 2.9 3.2 30.2 Bilateral share in total (%) 10.8 11.4 14.6 17.1 21.7 Principal 1.5 1.6 2.4 2.7 26.3 Interest 0.4 0.5 0.5 0.5 3.9 Other Govt. Debt (OGD)* 4.6 5.7 6.1 4.5 43.5 OGD share in total (%) 25.4 31.3 30.8 24.1 31.2 Principal 1.9 3.2 3.8 2.5 27.7 Interest 2.7 2.5 2.3 2.0 15.8 Total SED Service Payments 18.0 18.3 19.8 18.7 139.2 Principal 10.2 11.7 13.4 12.7 96.1 Interest 7.8 6.6 6.4 6.0 43.1

Source: CAAA and CCIL. * Converted into USD million with the exchange rate as on 30th March 2026.

Note: 1. Bilateral includes export credit component of bilateral credit and civilian rupee debt.

2. Other Govt. Debt includes FPI investment of Govt. Securities and State Development Loans.

3. Debt Service Payment for SDR and Defence Debt are not included in this table.

4. The projections do not include debt service arising out of Committed Undisbursed Balance (CUB) and fresh borrowings.

373.26 As shown in Table 3.1, debt service payments to multilateral institutions is expected to peak in 2026-27, while for bilateral investors, it is anticipated to peak in 2030-31. The projected trend in debt service payments to FPI investors is expected to be highest in 2028-29. The projected distribution of debt service payments across creditor categories is in line with their share of total outstanding external debt.

3.7 CONCLUDING OBSERVATION

3.27 SED has declined at end-March 2026 compared to end-March 2025, mainly due to a reduction in outstanding liabilities arising from FPI investments in Government securities.

Multilateral and bilateral borrowings under the external assistance programme continued to account for nearly two-thirds of SED and remained predominantly long-term. The currency composition of SED remained diversified, with US dollar-denominated debt accounting for the largest share.

During 2025-26, total sovereign external debt service payments declined by 1.8 per cent over the previous year, primarily due to lower interest payments.

38Chapter 4 India’s External Debt Service Payments India’s gross external debt service payments stood at USD 62.7 billion in 2025-26 as compared to USD 67.5 billion during the previous year, recording a decline of 7.2 per cent. Of the total debt service payments during the year, principal repayments decreased to USD 33.4 billion from USD

37.3 billion a year ago, while interest payments decreased to USD 29.2 billion from USD 30.3 billion. Principal repayment accounted for 53.3 per cent in India’s total external debt service payments during the year under review, while the rest (46.7 per cent) was on account of interest payments. The major decline in repayments during 2025-26 was primarily attributable to a 17.5 per cent decrease in principal repayments on commercial borrowings (CBs). Among the major sources of debt, CBs remained the costliest with an implicit interest rate of 5.7 per cent, followed by NRI deposits (5.3 per cent) and external assistance (3.2 per cent). The debt service ratio during 2025-26 declined from 6.6 per cent to 5.8 per cent. The debt service payment obligations arising from the stock of external debt as at end-March 2026 are projected to trend broadly downward over the medium to long term. The external debt service payments are projected to be around USD 63.5 billion in 2026-27 and USD 63.2 billion in 2027-28.

4.1 INTRODUCTION

4.1 This chapter examines India’s external debt service payments, terms of borrowings and external debt service payment projections. The debt service ratio is measured as the proportion of gross external debt service payments (principal and interest) to external current receipts. In simple terms, it indicates the extent to which foreign exchange earnings in a given year would be utilised to service external debt obligations due in that year. Furthermore, an analysis of debt service payment projections is useful for future cash flow management.

4.2 INDIA’S EXTERNAL DEBT SERVICE PAYMENTS

4.2 India’s external debt service payments declined by 7.2 per cent to USD 62.7 billion in 2025- 26, from USD 67.5 billion in the previous year. Within the total debt service payments, principal repayments decreased by 10.3 per cent to USD 33.4 billion, while interest payments declined by

3.4 per cent to USD 29.2 billion during the period. Principal repayments accounted for 53.3 per cent 39of total external debt service payments in 2025-26, with interest payments constituting the remaining 46.7 per cent. In comparison, the share of principal repayments in total debt service payments stood at 55.2 per cent in 2024-25 (Figure 4.1). The level of principal repayments is influenced by factors such as disbursements, repayment schedules and exchange rate movements.

Similarly, changes in interest rates also affect the interest component of debt service payments, as discussed in para 4.9.

Figure 4.1: External Debt Service Payments – Total, Principal and Interest (at end-March) Principal Interest Total Debt Service 80 70

62.7 60 n 50 o 29.2 illiB 40 D S U 30 20

33.4 10 0 8 1 - 7 1 0 2 9 1 - 8 1 0 2 0 2 - 9 1 0 2 1 2 - 0 2 0 2 2 2 - 1 2 0 2 3 2 - 2 2 0 2 4 2 - 3 2 0 2 5 2 - 4 2 0 2 6 2 - 5 2 0 2

Source: RBI

Note: Data for the year 2024-25 is partially revised and 2025-26 is provisional.

4.3 As shown in Figure 4.2, the debt service ratio, which represents total debt service payments as a proportion of current receipts of the Balance of Payments, declined to 5.8 per cent in 2025-26 from 6.6 per cent in the previous year. The decline was driven by a 5.8 per cent increase in current receipts, coupled with a 7.2 per cent decrease in debt service payments. Among the components of debt service payments, principal repayments towards “External Assistance” and rupee debt service payments increased by 17.4 per cent and 0.5 per cent, respectively, while debt service payments under all other components declined (Annex XVIII).

40Figure 4.2: External Debt Service Payments and Debt Service Ratio (at end-March) Total Debt Service Debt Service Ratio (%) - RHS 80 10 8 60 n o illiB40 5.8 6 c reP D 63.2 67.5 62.7 4ne S t U 20 44.6 40.9 41.8 49.4 41.6 49.2 2 0 0 8 1 - 7 1 0 2 9 1 - 8 1 0 2 0 2 - 9 1 0 2 1 2 - 0 2 0 2 2 2 - 1 2 0 2 3 2 - 2 2 0 2 4 2 - 3 2 0 2 5 2 - 4 2 0 2 6 2 - 5 2 0 2

Source: RBI and CAAA.

Note: Data for the year 2024-25 is partially revised and 2025-26 is provisional.

4.4 Debt service payments towards commercial borrowings accounted for the largest share of

65.4 per cent of total external debt service payments during 2025-26. Compared with 2024-25, debt service payments for commercial borrowings decreased by 12.0 per cent, due to a 17.5 per cent decline in principal repayments and a 2.6 per cent decline in interest payments. Debt service payments to official creditors for the loan under external assistance constitute the second largest component (20.5 per cent) in total debt service payments, followed by interest payments for NRI deposits (14.0 per cent) (Figure 4.3) (Annex XVIII).

Figure 4.3: Composition of India’s External Debt Service Payments (at end-March) External Assistance Commercial Borrowings NRI Deposits Rupee Debt

0.1 100%

14.0 80% 60%

65.4 40% 20%

20.5 0% 8 1 - 7 1 0 2 9 1 - 8 1 0 2 0 2 - 9 1 0 2 1 2 - 0 2 0 2 2 2 - 1 2 0 2 3 2 - 2 2 0 2 4 2 - 3 2 0 2 5 2 - 4 2 0 2 6 2 - 5 2 0 2

Source: RBI

Note: Data for the year 2024-25 is partially revised and 2025-26 is provisional.

414.5 The data on creditor-wise debt service payments are presented in Annex XIX, which shows that the external debt service payments to the commercial creditors stood at USD 38.8 billion in 2025-26, constituting 62 per cent of total debt service payments. This was followed by multilateral lenders at USD 11.7 billion (18.6 per cent)15.

4.6 Principal repayments on short-term debt are not included in total external debt service payments, in line with international best practices, as trade credit, which constitutes a significant share of short-term debt, is generally rolled over. Nevertheless, net disbursement16 on short-term debt is a useful indicator of rollover risk in the event of external shocks. Table 4.1 below presents the relevant data. In 2025-26, merchandise imports increased by 7.5 per cent,17 alongside a rise in net disbursements on short-term debt to USD 13.7 billion from USD 7.2 billion in 2024-25.18 The close association between import growth and trade credit over time suggests that trade credit financing has remained readily available to support import activity, indicating that the roll-over risk of short-term trade credit for India is muted.

Table 4.1: Disbursements and Principal Repayments under Short-term Debt (USD Billion) Year Gross disbursements Principal Repayments Net disbursements 2015-16 90.0 91.7 -1.6 2016-17 91.5 85.0 6.5 2017-18 100.5 86.6 13.9 2018-19 43.3 41.3 2.0 2019-20 38.8 39.8 -1.0 2020-21 37.4 41.5 -4.1 2021-22 64.4 44.3 20.1 2022-23 68.3 61.8 6.5 2023-24 58.9 59.7 -0.8 2024-25 68.0 60.9 7.2 2025-26 75.5 61.7 13.7

Source: RBI.

15 Commercial lenders through commercial loans, securitized instruments, FCCB and IFC and FPI debt Investments (in G-Sec plus corporate bonds) and banks’ overseas borrowings or securitized borrowings of commercial banks.

16 Gross disbursement minus principal repayments.

17 Merchandise imports rose in 2025-26 by 7.5 per cent (Ministry of Commerce’s press release dated April 15, 2026).

18 It is to be further noted that net disbursements have been negative during years of import contraction.

424.3 TERMS OF BORROWINGS

4.7 This section examines the terms of borrowings of India’s external debt involving implicit interest rate on various sources of debt and average terms of new commitments/ loans.

4.3.1 Implicit Interest Rate

4.8 The implicit interest rate is calculated by taking the interest payments during the year as a percentage of the outstanding debt at the end of the previous year, and it throws light on the comparative cost of debt across sources.

4.9 Table 4.2 shows the implicit interest rates for external assistance, NRI deposits, and commercial borrowings, which are the three main sources of India's external debt. The implicit rate of interest on the total external debt for 2025-26 is estimated at 4 per cent compared to 4.5 per cent in 2024-25. This year, the implicit interest rates declined across all major sources of external debt in 2025-26. The implicit interest rate on external assistance decreased marginally to 3.2 per cent in 2025-26 from 3.8 per cent in 2024-25. Similarly, the rate on NRI deposits declined to 5.3 per cent from 5.9 per cent, while the implicit interest rate on commercial borrowings declined significantly to 5.7 per cent from 6.8 per cent.

Table 4.2: Implicit Interest Rates on India’s External Debt: Source-wise (Per cent) Source 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 External

1.9 2.1 1.8 1.2 1.7 3.4 3.8 3.2 Assistancea Non-resident

5.1 5.0 3.5 3.3 4.5 5.6 5.9 5.3 Deposits Commercial

4.7 5.2 4.3 4.2 5.2 7.0 6.8 5.7 Borrowings Total Debt

3.3 3.4 2.8 2.6 3.2 4.3 4.5 4.0 Service a: Inclusive of non-government account figures supplied by the Office of Controller of Aid, Accounts & Audit, DEA, Ministry of Finance.

Source: RBI and CAAA.

434.3.2 Average Terms of New Commitments

4.10 World Bank compiles terms of new commitments/loans contracted, both from official and private sources, during any given year. Terms include interest rate, maturity and grace period. Such data on the average terms of new commitments to India shows that, in terms of maturity, it is still markedly more favourable to avail credit from official creditors than private creditors. Among the new loans contracted during 2024, loans from official creditors had, on average, a much longer maturity of 22.1 years, compared with 5.4 years for loans from private sources. Similarly, on average, the interest rate charged by the official creditors for the new loans contracted in 2024 was lower at 3.6 per cent than the 4.5 per cent charged by the private creditors. Further, loans from official creditors during 2024 had, on average, a longer grace period of 5.2 years than 4.7 years for the private creditors (Table 4.3).

Table 4.3: Average Terms of New Commitment for India Year Official Creditors Private Creditors Interest Maturity Grace Interest Maturity Grace (Per cent) (Years) Period (Per cent) (Years) Period

(Years) (Years) 2009 1.0 27.6 6.5 3.6 3.5 2.5 2010 0.8 30.8 8.4 2.3 6.5 3.6 2011 1.0 25.1 5.0 2.9 7.6 5.8 2012 2.2 22.8 6.1 3.6 6.9 6.2 2013 1.1 28.6 7.4 2.3 5.2 4.1 2014 1.8 21.5 5.7 2.9 6.4 5.0 2015 1.5 21.9 5.4 2.2 5.6 5.1 2016 1.5 24.9 7.5 2.8 7.1 6.4 2017 1.6 23.4 7.3 2.8 7.2 6.9 2018 1.9 28.3 8.0 2.9 5.3 5.2 2019 2.5 22.8 5.4 3.7 5.7 5.6 2020 0.9 21.5 6.0 2.7 8.4 7.8 2021 0.7 20.4 5.9 1.8 7.7 6.3 2022 1.3 24.4 6.8 2.7 6.6 5.3 2023 3.5 29.0 5.7 5.5 5.4 5.0 2024 3.6 22.1 5.2 4.5 5.4 4.7

Source: International Debt Statistics 2025, World Bank.

444.4 PROJECTIONS OF EXTERNAL DEBT SERVICE PAYMENTS

4.11 Projections of external debt service payments are presented in Table 4.4 below. The external debt service payments during the current year (2026-27) are projected to increase to USD 63.5 billion, comprising principal repayments of USD 48.0 billion and interest payments of USD 15.5 billion.

Table 4.4: Projections of External Debt Service Payments – Creditor-wise (USD Billion) 2026- 2027- 2028- 2029- 2030- 2031- 2032- 2033- 2034 Onwards Component 27 28 29 30 31 32 33 34 Multilateral# 13.3 12.4 11.9 11.9 11.4 10.2 9.4 8.7 29.4 Principal 8.3 8.5 8.2 8.4 8.1 7.2 6.7 6.3 17.3 Interest 5.0 3.8 3.8 3.6 3.3 3.0 2.7 2.4 12.2 Bilateral# 3.7 3.4 4.0 4.3 4.5 4.3 4.1 4.0 18.9 Principal 2.9 2.6 3.3 3.6 3.8 3.7 3.5 3.4 16.4 Interest 0.8 0.8 0.8 0.7 0.7 0.6 0.6 0.5 2.5 Export Credit 2.0 0.2 0.2 0.7 0.0 0.0 0.0 0.0 0.0 Principal 1.9 0.1 0.1 0.7 0.0 0.0 0.0 0.0 0.0 Interest 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Commercial

44.6 47.3 46.4 38.4 27.0 13.3 7.8 3.8 22.1 Borrowings Principal* 34.9 39.2 40.5 34.2 24.2 11.7 6.5 2.8 13.8 Interest** 9.7 8.0 5.9 4.2 2.9 1.7 1.2 1.0 8.3 Total Debt

63.5 63.2 62.5 55.4 43.0 27.9 21.4 16.5 70.5

Service:

Principal 48.0 50.5 52.1 46.9 36.1 22.6 16.8 12.6 47.4 Interest 15.5 12.7 10.5 8.6 6.9 5.3 4.5 3.9 23.0

Source: RBI, CAAA and CCIL. # The projections are based on original amortization schedule as per loan agreements. The actuals/projections will vary based on the debt servicing by non-govt. entities (PSUs).

* Includes commercial loans, securitized instruments, FCCB and loans from IFC. ** Includes commercial loans, securitized instruments, FCCB and loans from IFC and FPI Investment in G-Sec.

FPI Investment in G-Sec converted into USD with the exchange rate as on 30th March 2026.

Bilateral component also includes export credit component of bilateral credit and civilian rupee debt.

Debt service payments arising out of T-bills, SDRs, FPI investments in corporate debt, securitized borrowings by banks, NRI deposits, short-term debt, government-guaranteed non-government debt and defence debt, not included.

Projections are based on the debt outstanding as at end-March 2026.

4.12 The external debt service payments for the next year (2027-28), however, are projected at USD 63.2 billion, broadly unchanged from USD 63.5 billion in 2026-27, comprising higher principal repayments of USD 50.5 billion and lower interest payments of USD 12.7 billion. The increase in projected principal repayments is largely driven by commercial borrowings, which 45account for about three-fourths of the total projected debt service payments during 2027-28. Over the medium- to long-term, external debt service payments are projected to trend downward, primarily due to moderation in principal repayments on commercial borrowings and a gradual reduction in interest payments.

4.5 CONCLUSION

4.13 The external debt service payments during the year under review declined due to both lower principal repayments and interest payments. In addition, projections of debt service payments arising from the stock of external debt as at end-March 2026 indicate that these payments would trend downward and may remain manageable, supported by a substantial reserve cushion.

46Chapter 5 India’s External Debt Position - A Cross-Country Perspective In this Chapter, India’s external debt position is presented from a cross-country perspective. As of December 2025, the world's total external debt stood at USD 116.9 trillion, while India's was estimated at USD 767.4 billion, placing it 23rd globally. From a cross-country perspective, India’s external debt stock is thus modest.

Among Emerging Market and Developing Economies (EMDEs), India’s external debt position is the third largest after China and Brazil as of end-December 2025. In terms of various debt vulnerability indicators, India’s debt sustainability was better than that of the Low-and Middle- Income Countries (LMICs) as a group and vis-à-vis many of them individually.

5.1 This chapter presents India’s external debt from an international perspective, both with respect to the Advanced Economies (AEs) and the Emerging Market and Developing Economies

(EMDEs). Global data on external debt is sourced from the Quarterly External Debt Statistics

(QEDS) and the International Debt Statistics (IDS) of the World Bank19.

5.1 GLOBAL EXTERNAL DEBT20

5.2 In 2025, global external debt increased by 12 per cent to USD 116.9 trillion, up from USD

104.4 trillion in 2024. AEs accounted for 93.1 per cent of the increase in global external debt. The external debt of AEs, which constitutes 88.7 per cent of the global external debt stock, increased by

12.6 per cent to USD 103.6 trillion, while that of EMDEs increased by 6.9 per cent to USD 13.3 trillion. (Figure 5.1).

19 In October 2014, the World Bank, in collaboration with the International Monetary Fund (IMF), launched the new Quarterly External Debt Statistics (QEDS) SDDS and GDDS database in line with the classifications and definitions of the 2013 External Debt Statistics: Guide for Compilers and Users (2013 EDS Guide) and Sixth Edition of Balance of Payments and International Investment Position Manual (BPM6).

20 All debt stock figures reported in this section are as at end-December unless specified otherwise.

47Figure 5.1: Global External Debt (at end-December) EMDEs AEs Global External Debt 140

116.9 120

103.0 104.4 100 n o illir 80 T D S 60 90.9 92.0

103.6 U 40 20

12.0 12.4 13.3 0 2023 2024 2025

Note: Country groupings as per World Economic Outlook, IMF

Source: Quarterly External Debt Statistics, World Bank

5.3 The United States is the most externally indebted country in the world, with total external debt stock estimated at USD 29.4 trillion (25.2 per cent of the global external debt stock), followed by the UK (9.4 per cent), France (7.8 per cent), Germany (6.8 per cent) and the Netherlands (4.2 per cent). China is the only EMDE in the list of the top 20 indebted countries. In 2025, the total external debt of the 20 most indebted countries accounted for 86.4 per cent of the world's external debt stock. This share was broadly unchanged from 2024, indicating that global external debt remains highly concentrated among a relatively small group of countries.

5.4 India’s global position improved from 22nd in 2024 to 23rd in 2025, with an estimated external debt of USD 767.4 billion (Table 5.1).

48Table 5.1: Gross External Debt Stock of Top 20 Debtor Countries (Figures as of end-December) (USD Billion, unless otherwise indicated) Position Country 2023 2024 2025 Growth Rate (%) 2025 over 2024 over 2024 2023 1 2 3 4 5 6 1 United States 26,151 27,630 29,427 6.5 5.7 2 United Kingdom 9,593 9,835 11,017 12.0 2.5 3 France 7,638 7,589 9,138 20.4 -0.6 4 Germany 6,831 6,633 7,962 20.0 -2.9 5 Netherlands 4,303 4,074 4,868 19.5 -5.3 6 Japan 4,493 4,372 4,662 6.6 -2.7 7 Luxembourg 3,897 3,714 4,087 10.0 -4.7 8 Ireland 3,136 3,181 3,808 19.7 1.4 9 Canada 3,038 3,137 3,486 11.1 3.3 10 Italy 2,795 2,753 3,318 20.6 -1.5 11 Spain 2,708 2,698 3,239 20.1 -0.4 12 Switzerland 2,274 2,223 2,499 12.4 -2.2 13 Singapore 2,127 2,245 2,473 10.2 5.5 14 China 2,448 2,344 2,329 -0.7 -4.2 15 Hong Kong 1,846 1,890 2,062 9.1 2.4 16 Australia 1,603 1,660 1,842 10.9 3.6 17 Belgium 1,552 1,563 1,831 17.1 0.8 18 Sweden 1,043 977 1,124 15.0 -6.3 19 Austria 801 793 905 14.2 -0.9 20 Norway 742 735 856 16.4 -0.9

Memo Item:

23 India 649 719 767 6.8 10.8 Total Global ED 1,02,968 1,04,392 1,16,882 12.0 1.4

Source: QEDS, World Bank and World Economic Outlook, IMF

5.5 Among the top 20 most indebted countries, Italy recorded the largest increase in external debt (20.6 per cent y/y) between 2024 and 2025, whereas China was the only country to record a decline in external debt. (Figure 5.2).

49Figure 5.2: External debt to GDP ratio of top 20 debtor countries (at end-December) 2024 2025 Difference from 2024 to 2025 (RHS) 35 500 30 ) P 25 D 400 G P /tb 20 cre e D 300 ne tx 15 gat E ( 200 10 p e tn e c r e 100 5 stnio P 0 0 -5 A K e y s n d a y n d e a g a m n a y S U U c n a r F n a m r e G d n a lr e h te a p a J n a le r I d a n a C la tI ia p S n a lr e z tiw r o p a g n iS n ih C n o K g n o ila r ts u A u ig le B e d e w S ir ts u A a w r o N N S H

Note: Luxembourg, with an external debt-to-GDP ratio of 4042.4 per cent, is the outlier of the group.

Source: QEDS, World Bank and World Economic Outlook, IMF

5.1.1 Global External Debt: Maturity-Wise

5.6 Maturity-wise external debt data is available for ~79 countries reporting under the IMF's Special Data Dissemination Standard (SDDS) framework, which together account for approximately 97.9 per cent of global external debt.21 As of end-December 2025, short-term debt accounted for 40.1 per cent of total external debt. Across the top 20 externally indebted countries, the share of short-term debt in total external debt ranged from 21.1 per cent in Australia to 71.2 per cent in Japan, reflecting significant cross-country variation in debt maturity profiles. In six of these economies, namely, the United Kingdom, Japan, Singapore, Hong Kong SAR, China, and Switzerland, short-term external debt exceeded long-term external debt, indicating a relatively greater reliance on shorter-maturity external financing.

5.1.2 Global Stock of External Debt: Sector-Wise

5.7 Deposit-taking Corporations, except the Central Bank, accounted for the largest share of total external debt (30.9 per cent), closely followed by Other Sectors (comprising Other financial corporations, non-financial corporations and NPISH) (29.8 per cent). The share of the General 21 External debt data reported under the IMF's SDDS framework is available on QEDS, World Bank.

50Government and the Central Bank accounted for 22.3 per cent and 4.7 per cent of total external debt, respectively.

5.8 Among the countries reported in the IMF’s SDDS, Ecuador (83.5 per cent), Ukraine (70.4 per cent), and Sri Lanka (64.6 per cent) had the highest share of general government debt. The United Kingdom (57.4 per cent), Singapore (54.5 per cent), Sweden (52.8 per cent), Hong Kong (52.5 per cent), and France (52.2 per cent) recorded the highest shares in deposit-taking corporations, whereas Ireland (68.5 per cent), Thailand (51.2 per cent), and Luxembourg (50.5 per cent) had their largest share in other sectors. In India, other sectors accounted for the largest share of external debt (46.8 per cent), followed by deposit-taking corporations (26.4 per cent) and the General Government (22.0 per cent). Figure 5.3 below presents the sector-wise classification of the stock of external debt of the top twenty debtor countries as at end-December 2025.

Figure 5.3: External debt of top 20 debtors as at end-December 2025: Sector-wise 100% 80% 60% 40% 20% 0% A K e y s n g d a y n d e a g a m n a y S U U c n a r F n a m r e G d n a lr e h te a p a J r u o b m e x n a le r I d a n a C la tI ia p S n a lr e z tiw r o p a g n iS n ih C n o K g n o ila r ts u A u ig le B e d e w S ir ts u A a w r o N N u S H L General Government Central Bank Deposit-Taking Corp., exc. CB

Other Sectors DI: Intercom Lending

Source: QEDS, World Bank

5.2 EXTERNAL DEBT OF EMERGING MARKETS AND DEVELOPING ECONOMIES (EMDEs)22

5.9 External debt stock of all EMDEs increased by 6.9 per cent to USD 13.3 trillion in 2025 against an increase of 3 per cent in 2024. The ratio of external debt stock to GDP of EMDEs declined 22 This section explains the external debt position of EMDEs. The list of EMDE countries has been taken from the IMF, and external debt data has been taken from QEDS and the World Bank. India is an EMDE as well as an LMIC.

51from 28.1 per cent in 2024 to 27.3 per cent in 2025, while the ratio of external debt stock to exports of goods and services increased marginally from 99.1 to 99.2 per cent during the same period.

5.10 The total external debt stock of the top 20 debtor EMDEs together accounted for about 72.7 per cent of the total external debt stock of all EMDEs at end-December 2025. China was the most externally indebted EMDE, with an external debt stock of USD 2.3 trillion, representing 17.6 per cent of the total. It was followed by Brazil (6.2 per cent), India (5.8 per cent), and Mexico (4.9 per cent). Among these top 20 debtor EMDEs, only China recorded a reduction in its external debt stock during 2025. In contrast, several EMDEs, particularly Ukraine, Saudi Arabia, Romania, Colombia and Poland, witnessed a sharp increase in external debt in 2025. India’s external debt increased by

6.8 per cent in 2025, broadly in line with the overall increase in external debt of EMDEs (Table

5.2).

Table 5.2: Gross External Debt Stock of EMDEs@ (Figures as of end-December) (USD Billions) Growth Rate (%) Country Name 2023 2024 2025 2025 over 2024 2024 over 2023 1 2 3 4 5 6 1 China 2,448 2,344 2,329 -0.7 -4.2 2 Brazil 733 718 819 14.1 -2.0 3 India 649 719 767 6.8 10.8 4 Mexico 594 590 646 9.4 -0.7 5 Poland 429 461 546 18.3 7.6 6 Turkiye 432 460 520 13.1 6.5 7 Saudi Arabia 299 370 479 29.4 23.9 8 Indonesia 407 424 433 2.1 4.3 9 Malaysia 271 302 344 13.9 11.6 10 Argentina 284 276 320 15.6 -2.8 11 Hungary 281 297 313 5.5 5.7 12 Russian Federation 318 290 307 5.9 -8.9 13 Chile 243 245 277 13.2 0.7 14 Romania 202 211 268 27.0 4.4 15 Colombia 196 202 247 22.4 2.8 16 Ukraine 162 181 237 31.0 11.8 17 Thailand 197 195 209 7.1 -0.6 18 South Africa 158 168 200 19.0 6.5 19 Mauritius 193 190 192 1.2 -1.4 20 Kazakhstan 164 165 182 10.4 0.7 Total ED of all EMDEs 12,024 12,389 13,250 6.9 3.0 @ According to the IMF classification For country-wise data of EMDEs, as per World Bank classification, see Annex XXI

Source: QEDS, World Bank

525.3 EXTERNAL DEBT VULNERABILITY INDICATORS OF LOW AND MIDDLE- INCOME COUNTRIES (LMICs)23

5.11 As per the World Bank’s International Debt Report 2025,24 the external debt stock of LMICs increased marginally by 1.1 per cent to USD 8.9 trillion in 2024, about USD 101 billion above the 2023 level. The increase remained limited as countries relied more on domestic borrowing and selective external bond issuance amid tight global financial conditions. Long-term external debt increased by 0.8 per cent to USD 6.17 trillion, while short-term external debt increased by 2.5 per cent to USD 2.39 trillion during 2024.

5.12 For the second consecutive year, LMICs’ interest payments to service their external debt reached an all-time high. Debt servicing costs became more expensive because of persistently high interest rates that continued into 2024, combined with LMICs’ elevated debt stock positions. Despite the increase in interest payments, total debt service payments declined by 9.7 per cent in 2024 to USD 1.3 trillion, as principal repayments fell more sharply than interest payments rose, resulting in an improvement in debt service ratios.25 Figure 5.4: Select external debt sustainability indicators: LMICs (at end-December) Ratio of External Debt to Export 140 Ratio of External Debt to GNI Ratio of Foreign Exchange Reserve to external debt 120

98.8

95.1 100 90.2 80 o ita 72.0 R 60 40

23.4 20 0 2014 2020 2021 2022 2023 2024

Source: International Debt Statistics 2025, World Bank 23 This explains external debt position of LMICs. The data for this section is sourced from the International Debt Report 2025, World Bank. India is an EMDE as well as LMIC.

24 Data on external sector vulnerability indicators is available till 2024 from the International Debt Statistics (IDS) 2025.

25 International Debt Report 2025 (World Bank).

535.13 As shown in Figure 5.4, the key external debt vulnerability indicators of LMICs improved in 2024. The ratio of external debt to Gross National Income (GNI) declined to 23.4 per cent in 2024 from 24 per cent in the previous year, continuing the downward trend observed since 2020.

Similarly, the ratio of external debt to exports declined by 4.9 percentage points in 2024, while the ratio of foreign exchange reserves to external debt remained unchanged at 72 per cent.

5.14 Against the backdrop of the improvement in LMIC vulnerability indicators as a group in 2024, India's external debt position may be assessed against the same benchmark to assess its relative debt sustainability and external resilience.

5.3.1 External Debt to Gross National Income (GNI)

5.15 The ratio of external debt stock to GNI26 normalises external debt to the size of the economy, making it a useful indicator for cross-country comparisons. In 2024, India, with a ratio of 18.6 per cent, was the second-least-indebted country among the 20 most indebted LMICs, after China.

Ukraine (101.3 per cent) was the most heavily indebted, followed by Kazakhstan (62.6 per cent), Uzbekistan (60.5 per cent), Nigeria (60 per cent), and Colombia (49.2 per cent).

5.3.2 Share of Short-Term Debt

5.16 The share of short-term debt in the total stock of external debt is an important indicator to analyse potential debt vulnerability. In 2024, the ratio of short-term external debt to total external debt stock was 26.8 per cent for LMICs. With a ratio of 19.5 per cent, India is relatively better positioned than several major LMICs.

26 World Bank uses GNI in place of GDP for measuring the indicator.

54Figure 5.5: Select External Debt Indicators at end-December 2024 - LMICs vs India a. Total External Debt to GNI b. Short-term debt to External Debt Pakistan China Uzbekistan India 18.6 Bangladesh Colombia Philippines Ukraine Brazil Mexico Viet Nam Peru Indonesia Kazakhstan Mexico Bangladesh Peru Brazil Pakistan Philippines Thailand Indonesia Argentina India 19.5 Turkiye Egypt Egypt Argentina South Africa Nigeria Colombia South Africa Nigeria Viet Nam Uzbekistan Turkiye Kazakhstan Thailand Ukraine China 0 50 100 0 20 40 60 Per cent Per cent c. Forex Reserves to External Debt d. External Debt to Exports 160 300 140 250 120 100 88.7 200 tn tn e c r e P 68 00 e c r e P150 100 82.1 40 50 20 0 0 a n ih Cd n a lia h Ta id n Iu r e Ps e n ip p ilih Pm a N te iVn a ts ik e b z Uliz a r Bo c ix e Ma c ir f A h tu oa ir e g iNa is e n o d n Ia ib m o lo Ce y ik r u Ttp y g En a ts h k a z a Ke n ia r k Uh s e d a lg n a Bn a ts ik a Pa n itn e g r A m a N te iVd n a lia h Ta n ih Ca id n Io c ix e Mu re Ps e n ip p ilih Pa c irfA h tu o Se y ik ru Ta is e n o d n Iliz a rBn a ts h k a z a Ka ire g iNh s e d a lg n a Bn a ts ik e b z Utp y g Ea n itn e g rAa ib m o lo Ce n ia rk Un a ts ik a P S

Source: International Debt Statistics 2025, World Bank

5.3.3 Forex Reserve to External Debt

5.17 About 72 per cent of the total external debt stock of LMICs is covered by foreign exchange reserves in 2024. The forex reserve cover for the external debt for the top 20 debtor LMICs ranged from 12.2 per cent for Argentina to 142.8 per cent for China. After China (142.8 per cent), Thailand 55(123.6 per cent) had the highest reserve cover, followed by India (88.7 per cent) and Peru (85 per cent).

5.3.4 External Debt to Exports

5.18 The ratio of total external debt to exports of goods and services is also a good indicator of the capacity to repay. India, with the ratio of 82.1 per cent, is placed at 4th position after Vietnam, Thailand, and China among the top 20 debtor LMICs as of end-December 2024.

5.19 Overall, the sustainability of India’s external debt is better than that of LMICs as a group across key measures of external debt sustainability. To place these indicators in a broader international context, Box I presents a comparative assessment of selected external debt vulnerability indicators across G20 economies.

BOX I: EXTERNAL DEBT VULNERABILITY INDICATORS ACROSS G20 COUNTRIES27 A cross-country assessment of external debt vulnerability indicators provides useful insights into the sustainability of external debt. While the LMIC analysis focuses on commonly used debt sustainability indicators, the G20 comparison additionally examines indicators relating to debt burden, maturity profile and reserve adequacy. The analysis suggests that India's external debt position remained relatively resilient in 2025.

I. External Debt to GDP: The ratio of external debt to GDP is a broad indicator of an economy's capacity to sustain its external debt burden. Across G20 economies, external debt levels varied considerably in 2025. India's external debt stood at 19.6 per cent of GDP in 2025, placing it among the economies with relatively low external debt burdens. Among G20 economies, only China and the Russian Federation recorded lower external debt-to- GDP ratios.

II. Share of Short-Term Debt: The maturity composition of external debt is an important determinant of refinancing and rollover risks. A lower share of short-term debt generally reduces vulnerability to changes in global financial conditions. In 2025, short-term debt accounted for 19.9 per cent of India's external debt stock, implying that around four-fifth 27 All debt stock figures reported in this section are as at end-December unless specified otherwise.

56of its external debt had longer maturities. Compared with several G20 economies, India's external debt profile remained tilted towards longer-term liabilities,28 which helps mitigate refinancing and rollover risks.

Figure 5.6: Select External Debt Vulnerability Indicators at end-December 2025 External Debt to GDP Share of Short-Term Debt 70 250 60 200 50 tn e c re P150 tn e c re P34 00 100

19.9 20 50

19.6 10 0 0 a is s u Ra n ih Ca id n Ia is e n o d n Ie y ik ru To c ix e Mliz a rBa ib a rA id u a Sa e ro K h tu o Sa n itn e g rAa c irfA h tu o SA S Ua ila rts u An a p a Ja e ra o ru Ey la tIa d a n a Cy n a m re Ge c n a rFK U n a p a JK Ua n ih Ce c n a rFa is s u Ra d a n a Ca e ra o ru Ey n a m re GA S Ue y ik ru Ty la tIa c irfA h tu o Sa e ro K h tu o Sa ila rts u Aa id n Ia ib a rA id u a Sliz a rBa is e n o d n Ia n itn e g rAo c ix e M Forex Reserve to External Debt Short-Term Debt to Forex Reserves UK Russia Canada Australia Saudi Arabia France India 21.8 USA Mexico Germany Indonesia Euro area Brazil Argentina China Italy Japan South Korea Turkiye South Africa Indonesia Argentina South Africa Turkiye Mexico Italy Brazil Japan South Korea India 91.2 Euro Area Saudi Arabia Germany China Australia Russia USA 0 50 100 150 200 250 0 100 200 300 400 500 600 700 Per cent Per cent

Source: QEDS, World Bank, WEO database and World Development Indicators.

III. Forex Reserve to External Debt: The ratio of foreign exchange reserves to external debt measures the extent to which external liabilities are backed by reserve assets. Higher reserve coverage strengthens an economy's capacity to meet external obligations and absorb external shocks. In 2025, India recorded reserve cover equivalent to 91.2 per cent of its 28 India ranked 6th among G20 economies in terms of the share of short-term external debt (Figure 5.6).

57external debt, among one of the highest in the G20 and substantially above that of several AEs, including the United Kingdom, Canada, Australia, France, the United States, Germany, Italy and Japan. While India’s reserves fell marginally short of fully covering its external debt, only a few major economies, namely Russia, China and Saudi Arabia, held foreign exchange reserves in excess of their external debt.

IV. Short-Term Debt to Forex Reserves: Similarly, the ratio of short-term external debt to foreign exchange reserves indicates the extent to which reserves can cover short-term external debt. A lower ratio indicates a greater ability to meet short-term external obligations using reserve assets, if required. At end-December 2025, India's short-term external debt amounted to 21.8 per cent of its foreign exchange reserves, indicating a comfortable reserve buffer against near-term repayment obligations. Whereas in several AEs, the ratios were significantly higher, reflecting comparatively lower reserve cover relative to their short-term debt liabilities.

In addition to these indicators, India's external debt structure is diversified by currency, which is relevant for balancing exposure to exchange rate movements, particularly for foreign currency-denominated debt. At end-December 2025, rupee-denominated liabilities accounted for 30 per cent of total external debt, while US dollar-denominated liabilities accounted for

54.9 per cent.

Thus, taken together, India's external debt indicators point to a relatively low external debt burden, a favourable maturity profile and strong reserve adequacy compared with many G20 economies. These factors enhance the resilience of India's external sector and help contain vulnerabilities arising from adverse global financial and liquidity conditions.

5.4 PRESENT VALUE OF EXTERNAL DEBT

5.20 The concept of Present Value (PV) is a useful measure of assessing indebtedness. The PV of external debt outstanding is calculated by discounting the nominal value of all future debt service payments at prevailing market interest rates and aggregating the resulting PVs. The interest rates used in the calculations are the Commercial Interest Reference Rates for each relevant currency compiled and published by the Organisation for Economic Cooperation and Development

(OECD).29 29 International Debt Report 2025, World Bank

585.21 In a cross-country comparison, India appears less externally indebted when measured by the PV of external debt rather than by nominal value. On a nominal basis, India ranked 2nd among the top 20 most indebted LMICs in 2024; however, when measured in PV terms, it moved to 4th position. (Figure 5.7 and Annex XX).

Figure 5.7: Select Indicators of Present Value of External Debt – Top 20 LMIC Debtor Countries at end-December 2024 Present value of ED (USD billions) Present value of debt to exports of goods and service (%) - RHS 500 250 Present value of debt to GNI (%) - RHS 450 400 200 350 300 150 P e n o 250 c r illiB 200 100 tne D 150 S U 100 50 50 0 0 a n ih C o c ix e M a is e n o d n I a id n I liz a r B e y ik r u T a ib m o lo C tp y g E a c ir f A h tu o e n ia r k U n a ts ik a P a n itn e g r A s e n ip p ilih P h s e d a lg n a B a ir e g iN u r e P n a ts ik e b z U n a ts h k a z a K d n a lia h T m a N te iV S

Source: International Debt Statistics 2025, World Bank

5.5 CONCLUSION

5.22 This chapter has analysed external debt from a cross-country perspective using data from the World Bank and the IMF. From a global perspective, India’s external debt stock is relatively modest, while among EMDEs it is the third largest after China and Brazil. The key external debt vulnerability indicators point to a relatively stronger position for India compared with LMICs as a group, particularly in the external debt-to-GNI ratio, the share of short-term debt, and foreign exchange reserve cover. Further, India’s external debt position appears more favourable when assessed in present value terms rather than nominal terms.

59Annexures

Annexure I: External Debt: Definitions, Concepts and Dissemination of Data I. Definitions and Concepts

1. External Debt Gross external debt is a stock variable and is measured at a point in time. External debt is defined as “the outstanding amount of those actual current, and not contingent, liabilities that require payment(s) of principal and/or interest by the debtor at some point(s) in the future and that are owed to non-residents by residents of an economy” {External Debt Statistics - Guide for Compilers and Users, International Monetary Fund (IMF), 2003}.

2. Original and Residual Maturity

(i) Original maturity is defined as the period encompassing the precise time of the creation of the financial liability to its date of final maturity.

(ii) Debt by residual maturity (or remaining maturity) includes short-term debt by original maturity of up to one year, combined with medium to long-term debt repayment by original maturity falling due within the twelve-month period following a reference date. External debt is commonly expressed in terms of original maturity.

3. Long and Short-term One way of classifying external debt is the two-way scheme based on duration – long and short- term. Long-term debt is defined as debt with an original maturity of more than one year, while short- term debt is defined as debt repayments on demand or with an original maturity of one year or less.

The coverage of short-term was redefined in 2005-06 by including supplier’s credit up to 180 days and FII investment in the Government Treasury Bills and other instruments and further in March 2007 by including external debt liabilities of the banking system and the investment in the Government securities by the foreign central banks and the international institutions.

4. Multilateral and Bilateral Debt Multilateral creditors are primarily multilateral institutions such as the International Development Association (IDA), International Bank for Reconstruction and Development (IBRD), Asian 60Development Bank (ADB) etc. Bilateral creditors are sovereign countries with whom sovereign and non-sovereign entities enter into one-to-one loan arrangements. Some of India’s bilateral creditors who extend loans to both sovereign and non-sovereign debtors include Japan, Germany, the United States, France and the Russian Federation.

5. Sovereign (Government) and Non-Sovereign (Non-Government) debt Sovereign debt includes (i) external debt outstanding on account of loans received by the Government of India under the ‘external assistance’ programme and civilian component of Rupee Debt; (ii) other Government debt comprising borrowings from IMF, defence debt component of Rupee debt as well as foreign currency defence debt and FII investment in Government Securities.

Non-sovereign debt includes the remaining components of external debt.

6. Trade Credits/Export Credits Trade credits/Export credits refer to loans and credits extended for imports directly by overseas suppliers, banks and financial institutions to sovereign and non-sovereign entities. Depending on the source of finance, such credits can be either suppliers’ credit or buyers’ credit.

(i) Suppliers’ Credit: Such credit is extended by the overseas supplier of goods in the form of deferred payments.

(ii) Buyers’ Credit: Such credit is provided by a bank or financial institution and is generally governed by OECD consensus terms. It also carries insurance from the export credit agency of the concerned country.

7. External Commercial Borrowings The definition of commercial borrowing includes loans from commercial banks and other commercial financial institutions, money raised through the issue of securitised instruments like bonds (including India Development Bonds (IDBs) and Resurgent India Bonds (RIBs)), Floating Rate Notes (FRN) and securitised borrowings of commercial banks, etc. It also includes borrowings through buyers' credit & suppliers’ credit mechanisms of the concerned countries, International Finance Corporation, Washington [IFC (W)], Nordic Investment Bank and private sector borrowings from the Asian Development Bank (ADB).

8. NRI Deposits Non-Resident Indian (NRI) deposits are of three types:

61(i) Non-Resident (External) Rupee Account {NR(E)RA} Deposits were introduced in 1970. Any NRI can open an NRE account with funds remitted to India through a bank abroad. An NRE account maintained in Indian rupee may be opened as a current, savings or term deposit.

The amount held in these deposits, together with the interest accrued, can be repatriated.

(ii) Foreign Currency (Non-Resident) (Banks) Deposits {FCNR (B)} was introduced with effect from May 15, 1993. These are term deposits maintained only in Pound Sterling, U.S. dollar, Japanese Yen, Euro, Canadian dollar and Australian dollar. The minimum maturity period of these deposits was raised from six months to one-year, effective October 1999. From July 26, 2005, banks have been allowed to accept FCNR (B) deposits up to a maximum maturity period of five years against the earlier maximum limit of three years.

(iii) Non-Resident Ordinary Rupee (NRO) Accounts – Any person resident outside India may open and maintain an NRO account with an Authorised Dealer or in the authorised bank for the purpose of putting through bonafide transactions denominated in Indian Rupees. NRO Accounts may be opened/maintained in the form of current, saving, recurring or fixed deposits. NRI/Persons of Indian Origin (PIO) may remit an amount not exceeding USD 1 million per financial year out of the balances held in NRO Accounts.

9. Concessional Debt Generally, a loan is defined as ‘concessional’ when it carries a grant element of 25 per cent or more.

In India, loans from multilateral (International Development Association (IDA), International Fund for Agricultural Development (IFAD)) and bilateral sources (including rupee debt that is serviced through exports) are categorised as ‘concessional’, based on their terms of long maturity and less- than-market rate of interest charged on them.

10. External Debt from Official and Private Creditors External debt from multilateral and bilateral sources of finance, export credit component of bilateral credit, export credit for defence purposes, rupee debt, etc., is called official debt. External debt from private creditors denotes sources of loans raised under ECBs, NRI deposits, export credits (other than those included under official creditors), and short-term debt.

11. External Debt to GDP Ratio The ratio of the external debt stock to GDP is derived by scaling the total outstanding debt stock (in rupees) at the end of the financial year by the GDP (in rupees at current market prices) during the financial year.

6212. Debt Service Ratio The debt service ratio is measured by the proportion of total debt service payments (i.e. principal repayment plus interest payment) to current receipts (minus official transfers) of Balance of Payments (BoP). It indicates the claim that servicing of external debt makes on current receipts and is, therefore, a measure of strain on BoP due to servicing of debt service obligations.

13. Borrower Classification of External Debt The borrower classification of external debt provides a breakup into Government (Sovereign) and non-government debt. The latter is further categorised into financial, public and private sectors. The financial sector represents borrowings by banks and financial institutions, including long-term NRI Deposits. Public sector debt represents borrowings of non-financial public sector enterprises, and private sector debt represents borrowings of non-financial private sector enterprises.

14. External Debt Denominated in Rupee Currency Unlike foreign currency-denominated external debt, where the currency (exchange rate) risk is borne by the borrower, the characteristic feature of domestic currency-denominated debt is that the exchange rate risk is borne by the creditor. The contractual liability, however, is settled in terms of the designated foreign currency (Exports in case of Rupee debt owed to Russia). This implies that the borrower gains (and the creditor loses) when the local currency depreciates since less has to be repaid in foreign currency terms and vice versa.

India’s External Debt denominated in Rupees consists of the following categories: -

(i) Rupee Debt: The outstanding state credits (both defence and civilian) extended to India by the erstwhile Union of the Soviet Socialist Republic (USSR). The debt is denominated in Rupees, and repayment of such debt is made primarily through the export of goods to Russia;

(ii) Rupee Denominated NRI Deposits viz. the Non-Resident (External) Rupee Account {NR(E)RA} and the Non-Resident Ordinary Rupee (NRO) Accounts. The NR(E)RA is categorised as an external debt liability since the principal amount held in such accounts, as well as the interest accrued, are repatriable;

(iii) Foreign Institutional Investor’s (FII) Investments in Government Treasury Bills (TBs) and dated securities; and

(iv) FII Investments in corporate debt securities.

63II. Dissemination of External Debt Statistics in India

(i) The Government of India has been publishing the Status Report on India’s external debt annually since 1993. The coverage of external debt statistics has been expanded over the years to align it with the best international practices and make it more comprehensive. India has also been disseminating data on external debt under the IMF’s Special Data Dissemination Standards (SDDS) and Quarterly External Debt Statistics (QEDS) database jointly developed by the World Bank and the International Monetary Fund.

(ii) The external debt statistics of India are disseminated with a lag of three months from the end of the reference quarter in both the country-specific and SDDS format and are accessible at www.dea.gov.in and www.rbi.org.in. In November 2006, India joined the ‘Quarterly External Debt Statistics’ database, jointly developed by the World Bank and International Monetary Fund and has been compiling external debt statistics in the QEDS format every quarter and furnishing the same for release on the World Bank’s website.

(iii) Under the present arrangement, the External Debt Management Unit (EDMU) in the Ministry of Finance (MoF), Department of Economic Affairs (DEA), Government of India compiles external debt data for the quarters ending September and December, while the Reserve Bank of India (RBI) compiles and disseminates data for the quarters ending March and June every year. In addition, an annual publication, ‘India’s External Debt: A Status Report’, is brought out by the EDMU, MoF, Government of India. Office of the Controller of Aid Accounts & Audit (CAAA) of the DEA, MoF publishes a report titled ‘External Assistance’, which provides a detailed account of external assistance received by the Government of India in the form of loans/credits and grants from foreign countries, international institutions and other organisations. It provides donor/country /currency-wise details along with information relating to interest rate structure and maturity profile of external debt availed from multilateral and bilateral creditors.

(iv) The data published for the current quarter/year are termed as ‘Provisional’. Provisional data are subject to revision during the next twelve months, which are labelled as ‘Partially Revised’ as and when they are published. The partially revised data are fully ‘frozen’ and released as final data with a lag of twenty-four months from the reference date.

Extraordinary revisions are undertaken within the cycle only in the event of methodological changes with respect to data collection and compilation procedures and/or significant changes indicated by data sources that may entail structural shifts in the data series.

64(v) External debt recording and compilation is done with the aid of the latest version of Commonwealth Secretariat Debt Recording and Management System (CS-DRMS) 2000+ (version 1.3) by the CAAA, DEA, MoF and (Department of Statistics and Information Management (DSIM)) Reserve Bank of India (RBI). About 60 per cent of external debt is recorded in CS-DRMS 2000+, except NRI deposits and short-term debt. Besides, FII investment and defence debt and some minor portions of the external debt are also not under the purview of this computerisation scheme.

(vi) The external debt statistics are compiled using the methodology and practices prescribed in the ‘External Debt Statistics: Guide for Compilers and Users’ brought out by the IMF. The coverage of India’s external debt statistics, particularly short-term external debt, has been expanded gradually to make these statistics more comprehensive. In fact, short-term trade credits, which are not adequately captured in external debt statistics of several countries due to conceptual issues and data-related problems, are being compiled regularly and included in the short-term debt. To that extent, global comparisons may be problematic in terms of magnitudes.

65Annexure II: Key External Debt Indicators Year External Debt Ratio of Ratio of Ratio of Ratio of Ratio of Debt (USD Service Foreign Total Concessional Short- Short- Million) Ratio Exchange External Debt to term term Reserves Debt to Total Debt Debt to Debt to to Total GDP Foreign Total Debt Exchange Debt Reserves (Per cent) 1990-91 83,801 35.3 7.0 28.7 45.9 146.5 10.2 1991-92 85,285 30.2 10.8 38.7 44.8 76.7 8.3 1992-93 90,023 27.5 10.9 37.5 44.5 64.5 7.0 1993-94 92,695 25.4 20.8 33.8 44.4 18.8 3.9 1994-95 99,008 25.9 25.4 30.8 45.3 16.9 4.3 1995-96 93,730 26.2 23.1 26.6 44.7 23.2 5.4 1996-97 93,470 23.0 28.3 24.6 42.2 25.5 7.2 1997-98 93,531 19.5 31.4 24.3 39.5 17.2 5.4 1998-99 96,886 18.7 33.5 23.6 38.5 13.2 4.4 1999-00 98,263 17.1 38.7 22.0 38.9 10.3 4.0 2000-01 1,01,326 16.6 41.7 22.1 35.4 8.6 3.6 2001-02 98,843 13.7 54.7 20.8 35.9 5.1 2.8 2002-03 1,04,914 16.0a 72.5 20.0 36.8 6.1 4.5 2003-04 1,12,653 16.1b 100.3 17.7 35.8 3.9 3.9 2004-05 1,34,002 5.9 c 105.6 18.4 30.7 12.5 13.2 2005-06 1,39,114 10.1d 109.0 17.1 28.4 12.9 14.0 2006-07 1,72,360 4.7 115.6 17.7 23.0 14.1 16.3 2007-08 2,24,407 4.8 138.0 18.3 19.7 14.8 20.4 2008-09 2,24,498 4.4 112.2 20.7 18.7 17.2 19.3 2009-10 2,60,935 5.8 106.9 18.5 16.8 18.8 20.1 2010-11 3,17,891 4.4 95.9 18.6 14.9 21.3 20.4 2011-12 3,60,766 6.0 81.6 21.1 13.3 26.6 21.7 2012-13 4,09,374 5.9 71.3 22.4 11.1 33.1 23.6 2013-14 4,46,178 5.9 68.2 23.9 10.4 30.1 20.5 2014-15 4,74,675 7.6 72.0 23.8 8.8 25.0 18.0 2015-16 4,84,791 8.8 74.3 23.4 9.0 23.2 17.2 2016-17 4,71,012 8.3 78.5 19.8 9.4 23.8 18.7 2017-18 5,29,290 7.5 80.2 20.1 9.1 24.1 19.3 2018-19 5,43,112 6.4 76.0 19.9 8.7 26.3 20.0 2019-20 5,58,437 6.5 85.6 20.9 8.8 22.4 19.1 2020-21 5,73,663 8.2 100.6 21.1 9.0 17.5 17.6 2021-22 6,19,076 5.2 98.1 20.0 8.3 20.0 19.7 66Year External Debt Ratio of Ratio of Ratio of Ratio of Ratio of Debt (USD Service Foreign Total Concessional Short- Short- Million) Ratio Exchange External Debt to term term Reserves Debt to Total Debt Debt to Debt to to Total GDP Foreign Total Debt Exchange Debt Reserves (Per cent) 2022-23 6,23,928 5.3 92.7 19.6 8.2 22.2 20.6 2023-24 R 6,68,883 6.7 96.6 19.2 7.4 19.7 19.1 2024-25 PR 7,36,419 6.6 90.8 19.8 6.9 20.1 18.3 2025-26 P 7,62,766 5.8 90.6 20.8 6.7 21.6 19.6

Source: Reserve Bank of India.

R: Revised; PR: Partially Revised; P: Provisional a: Works out to 12.4 per cent, with the exclusion of pre-payment of USD 3.4 billion. b: Works out to 8.2 per cent, with the exclusion of pre-payment of USD 3.8 billion and redemption of Resurgent India Bonds (RIBs) of USD 5.5 billion.

c: Works out to 5.7 per cent, with the exclusion of pre-payment of USD 381 million. d: Works out to 6.3 per cent, with the exclusion of India Millennium Deposits (IMDs) repayments of USD 7.1 billion a nd pre-payment of USD 23.5 million.

67Annexure III: India's External Debt Outstanding (Annual) - In Rupees (₹ Crore) Sl. Components of 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P No. External Debt

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) I. MULTILATERAL 3,59,490 3,54,118 3,71,783 3,96,131 4,48,824 5,07,314 5,53,703 6,17,679 6,49,787 6,91,039 7,62,290 A. Government 2,94,122 2,88,246 3,04,595 3,20,336 3,62,042 4,19,319 4,60,547 5,21,803 5,56,039 5,97,746 6,64,284 Borrowing

(i) Concessional 1,66,506 1,56,726 1,64,002 1,60,421 1,66,300 1,65,241 1,61,129 1,57,806 1,42,175 1,28,183 1,22,634 a) IDA 1,63,772 1,54,050 1,60,970 1,57,188 1,62,506 1,61,408 1,57,206 1,53,736 1,38,007 1,23,731 1,17,484 b) Others 2,734 2,676 3,032 3,233 3,794 3,833 3,923 4,070 4,168 4,452 5,149

(ii) Non- 1,27,616 1,31,519 1,40,593 1,59,915 1,95,742 2,54,077 2,99,418 3,63,996 4,13,865 4,69,563 5,41,650 concessional a) IBRD 61,553 60,667 61,663 67,248 82,796 99,216 1,13,578 1,35,746 1,56,760 1,81,785 2,02,840 b) Others 66,063 70,852 78,930 92,667 1,12,946 1,54,862 1,85,840 2,28,251 2,57,104 2,87,778 3,38,811 B. Non-Government 65,368 65,872 67,188 75,795 86,782 87,996 93,155 95,876 93,747 93,293 98,007 Borrowing

(i) Concessional 0 0 0 0 0 0 0 0 0 0 0

(ii) Non- 65,368 65,872 67,188 75,795 86,782 87,996 93,155 95,876 93,747 93,293 98,007 concessional a) Public Sector 35,409 32,123 33,715 39,028 40,927 48,303 49,113 50,016 49,640 48,346 40,888 i) IBRD 17,005 16,625 16,935 18,652 21,544 21,900 23,190 24,088 24,782 24,895 16,221 ii) Others 18,404 15,498 16,780 20,375 19,383 26,404 25,923 25,928 24,859 23,451 24,666 b) Financial 25,190 29,829 30,231 35,155 42,164 30,051 33,059 35,921 34,858 36,112 48,420 Institutions i) IBRD 5,984 7,276 7,418 8,449 8,609 7,885 8,518 8,702 8,359 3,446 2,156 ii) Others 19,206 22,553 22,812 26,706 33,555 22,167 24,541 27,219 26,499 32,666 46,264 c) Private Sector 4,769 3,920 3,242 1,612 3,690 9,641 10,984 9,940 9,249 8,835 8,699 i) IBRD 0 0 0 0 0 0 0 0 0 0 0 ii) Others 4,769 3,920 3,242 1,612 3,690 9,641 10,984 9,940 9,249 8,835 8,699 II. BILATERAL 1,49,378 1,50,808 1,64,847 1,76,660 2,10,362 2,25,017 2,47,130 2,84,061 2,93,476 3,35,723 3,86,175 68Sl. Components of 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P No. External Debt

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) A. Government 1,02,925 1,09,742 1,28,945 1,41,410 1,67,494 1,79,101 1,97,997 2,26,725 2,39,507 2,76,210 3,23,957 borrowing

(i) Concessional 1,02,925 1,09,742 1,28,945 1,41,410 1,67,494 1,79,101 1,97,997 2,26,725 2,39,507 2,76,210 3,23,957

(ii) Non- 0 0 0 0 0 0 0 0 0 0 0 concessional B. Non-Government 46,453 41,066 35,902 35,250 42,868 45,916 49,132 57,337 53,969 59,513 62,218 borrowing

(i) Concessional 11,892 11,988 12,973 17,389 24,776 25,069 24,501 27,681 24,362 26,966 27,048 a) Public Sector 9,052 6,758 7,600 12,182 18,751 19,265 19,833 23,049 20,581 22,254 22,256 b) Financial 2,840 5,230 5,373 5,207 6,025 5,804 4,669 4,631 3,781 4,712 4,792 Institutions c) Private Sector 0 0 0 0 0 0 0 0 0 0 0

(ii) Non- 34,560 29,077 22,930 17,861 18,092 20,847 24,631 29,656 29,607 32,547 35,170 concessional a) Public Sector 10,938 9,478 8,531 7,048 3,618 5,156 6,523 7,098 6,132 7,019 10,286 b) Financial 3,029 3,169 2,530 2,296 2,007 5,165 6,057 9,182 9,759 11,765 11,145 Institutions c) Private Sector 20,594 16,430 11,869 8,516 12,467 10,527 12,051 13,375 13,716 13,762 13,739 III. IMFa 37,177 35,129 37,716 38,202 40,931 41,442 1,73,415 1,83,021 1,82,587 1,87,735 2,12,689 IV. TRADE CREDIT 70,001 62,426 61,660 54,899 52,617 45,969 25,353 23,980 24,491 26,392 27,427 a) Buyers' credit 54,963 46,790 43,683 35,692 30,952 23,539 19,378 17,693 16,329 15,271 15,498 b) Suppliers' credit 6,088 6,094 6,764 6,910 7,101 6,856 5,975 6,288 8,162 11,121 11,929 c) Export credit component of 8,950 9,543 11,213 12,297 14,565 15,574 0 0 0 0 0 bilateral credit V. COMMERCIAL 11,97,176 11,15,514 13,12,756 14,28,897 16,54,195 15,95,071 17,12,042 18,17,207 20,89,300 24,96,182 28,36,648 BORROWINGS a) Commercial bank 6,47,311 5,67,286 5,50,820 6,59,541 8,23,472 8,06,167 7,93,757 8,72,222 9,69,591 12,00,607 14,79,586 loans b 69Sl. Components of 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P No. External Debt

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) b) Securitized 5,47,465 5,45,906 7,59,701 7,67,283 8,28,604 7,86,907 9,16,492 9,43,262 11,18,304 12,95,366 13,56,909 borrowings c c) Loans/securitized borrowings etc., with 2,400 2,323 2,234 2,074 2,120 1,998 1,793 1,723 1,405 209 153 multilateral/bilateral guarantee + IFC(W) VI. NRI DEPOSITSd (Above one year 8,41,956 7,57,751 8,20,737 9,02,152 9,77,309 10,27,382 10,59,041 11,41,818 12,66,272 14,09,330 15,67,984 maturity) VII. RUPEE DEBTe 8,479 7,962 7,886 8,007 7,704 7,162 7,279 6,687 7,106 6,897 6,914 a) Defence 7,887 7,398 7,350 7,498 7,223 6,708 6,853 6,289 6,736 6,555 6,598 b) Civilian 592 564 536 509 481 453 426 398 370 343 316 VIII. TOTAL LONG- TERM DEBT (I TO 26,63,657 24,83,708 27,77,385 30,04,948 33,91,944 34,49,358 37,77,962 40,74,453 45,13,018 51,53,299 58,00,128 VII) IX. SHORT-TERM 5,53,906 5,71,387 6,64,575 7,49,924 8,05,708 7,42,995 9,22,484 10,55,491 10,63,760 11,50,986 14,12,565 DEBT a) Trade-Related 5,30,806 5,60,781 6,52,969 7,08,379 7,64,291 7,14,863 8,89,665 10,18,650 10,26,037 11,14,431 13,62,668 Credits

1) Above 6 3,39,674 3,64,104 4,31,225 3,62,982 3,89,010 3,44,758 3,64,620 4,99,899 4,80,836 4,72,664 6,02,404 Months

2) Upto 6 Months 1,91,132 1,96,677 2,21,744 3,45,397 3,75,281 3,70,106 5,25,045 5,18,751 5,45,201 6,41,767 7,60,263 b) FII Investment in Govt. Treasury Bills 132 260 580 12,003 12,990 12,467 15,927 16,426 11,687 9,900 2,962 and other instruments c) Investment in Treasury Bills by foreign central banks 1,576 1,577 1,791 1,820 1,822 1,955 1,940 1,879 1,785 1,660 2,281 and other international institutions etc.

70Sl. Components of 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P No. External Debt

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) d) External Debt 21,392 8,768 9,235 27,721 26,605 13,710 14,953 18,535 24,251 24,994 44,655

Liabilities of:

1) Central Bank 1,197 1,575 1,782 1,529 1,357 1,282 574 1,102 1,747 385 1,117

2) Commercial 20,195 7,194 7,453 26,193 25,248 12,429 14,379 17,433 22,504 24,609 43,538 banks X. GRAND TOTAL 32,17,563 30,55,095 34,41,960 37,54,872 41,97,652 41,92,353 47,00,446 51,29,944 55,76,778 63,04,284 72,12,693 (VIII+IX)

Source: Ministry of Finance (Department of Economic Affairs), Ministry of Defence, Reserve Bank of India, Securities & Exchange Board of India, Clearing Corporation of India.

R: Revised; PR: Partially Revised; P: Provisional.

IFC(W): International Finance Corporation, Washington D.C.

FII: Foreign Institutional Investors a: Relates to SDR allocations from March 2004 onwards. b: Includes Financial Lease since 1996. c: Also includes India Development Bonds (IDBs), Resurgent India Bonds (RIBs), India Millennium Deposits (IMDs), Foreign Currency Convertible Bonds (FCCBs) and net investment by 100% FII debt funds and securitized borrowings of commercial banks. FCCB debt has been adjusted since end-March, 1998 after netting out conversion into equity and redemptions.

d: Figures include accrued interest. e: Rupee denominated debt owed to Russia and payable through exports.

Note: NRO Deposits are included under NRI Deposits from the quarter ended June 2005. Supplier’s Credits upto 180 days and FII investment in short-term debt instruments are included under short-term debt from the quarter ended March 2005. Vostro balances / Nostro overdrafts of commercial banks, balances of foreign central banks/international institutions with RBI and investment in T-bills/securities by foreign central banks/ international institutions have been included in external debt from the quarter ended March 2007.

71Annexure IV: India's External Debt Outstanding (Annual) - US Dollar (USD Million) Sl. Components of External 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P No. Debt

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) I. MULTILATERAL 54,000 54,499 57,249 57,455 59,919 69,750 72,864 75,111 77,926 80,560 81,061 A. Government Borrowing 44,170 44,356 46,907 46,471 48,354 57,689 60,596 63,451 66,683 69,675 70,672

(i) Concessional 25,005 24,117 25,256 23,272 22,211 22,734 21,200 19,189 17,050 14,941 13,047 a) IDA 24,595 23,705 24,789 22,803 21,704 22,206 20,684 18,694 16,550 14,422 12,499 b) Others 411 412 467 469 507 527 516 495 500 519 548

(ii) Non-concessional 19,165 20,238 21,651 23,199 26,143 34,956 39,396 44,262 49,632 54,733 57,625 a) IBRD 9,244 9,335 9,496 9,756 11,058 13,650 14,944 16,507 18,799 21,189 21,580 b) Others 9,921 10,903 12,155 13,443 15,085 21,306 24,452 27,755 30,833 33,544 36,045 B. Non-Government 9,829 10,144 10,342 10,984 11,566 12,061 12,268 11,660 11,243 10,885 10,389 Borrowing

(i) Concessional 0 0 0 0 0 0 0 0 0 0 0

(ii) Non-concessional 9,829 10,144 10,342 10,984 11,566 12,061 12,268 11,660 11,243 10,885 10,389 a) Public Sector 5,319 4,944 5,192 5,661 5,465 6,632 6,465 6,082 5,953 5,638 4,343 i) IBRD 2,554 2,558 2,608 2,706 2,877 3,013 3,051 2,929 2,972 2,902 1,726 ii) Others 2,765 2,386 2,583 2,955 2,587 3,619 3,414 3,153 2,981 2,736 2,618 b) Financial 3,791 4,595 4,652 5,091 5,612 4,118 4,354 4,368 4,181 4,215 5,127 Institutions i) IBRD 899 1,120 1,142 1,226 1,150 1,085 1,121 1,058 1,002 402 229 ii) Others 2,892 3,475 3,509 3,865 4,462 3,033 3,233 3,310 3,178 3,814 4,897 c) Private Sector 719 605 498 233 490 1,312 1,449 1,209 1,109 1,032 919 i) IBRD 0 0 0 0 0 0 0 0 0 0 0 ii) Others 719 605 498 233 490 1,312 1,449 1,209 1,109 1,032 919 II. BILATERAL 22,448 23,214 25,382 25,622 28,080 30,926 32,524 34,543 35,195 39,142 41,058 A. Government borrowing 15,457 16,887 19,857 20,514 22,370 24,640 26,051 27,570 28,723 32,196 34,465

(i) Concessional 15,457 16,887 19,857 20,514 22,370 24,640 26,051 27,570 28,723 32,196 34,465 72Sl. Components of External 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P No. Debt

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

(ii) Non-concessional 0 0 0 0 0 0 0 0 0 0 0 B. Non-Government 6,991 6,327 5,525 5,108 5,710 6,285 6,473 6,973 6,473 6,946 6,593 borrowing

(i) Concessional 1,786 1,845 1,998 2,523 3,309 3,449 3,224 3,366 2,922 3,143 2,878 a) Public Sector 1,359 1,040 1,170 1,767 2,504 2,650 2,609 2,803 2,468 2,594 2,368 b) Financial 427 805 827 755 805 798 614 563 453 549 510 Institutions c) Private Sector 0 0 0 0 0 0 0 0 0 0 0

(ii) Non-concessional 5,205 4,482 3,527 2,585 2,400 2,836 3,249 3,607 3,551 3,803 3,716 a) Public Sector 1,646 1,459 1,313 1,021 480 701 860 863 735 820 1,087 b) Financial 455 488 389 333 267 703 799 1,117 1,171 1,375 1,177 Institutions c) Private Sector 3,105 2,534 1,825 1,231 1,654 1,432 1,590 1,627 1,645 1,608 1,451 III. IMFa 5,605 5,410 5,784 5,523 5,430 5,638 22,876 22,261 21,910 21,987 22,445 IV. TRADE CREDIT 10,548 9,625 9,483 7,943 6,993 6,278 3,344 2,917 2,937 3,084 2,898 a) Buyers' credit 8,286 7,216 6,716 5,160 4,106 3,202 2,556 2,152 1,959 1,784 1,637 b) Suppliers' credit 918 940 1,040 999 942 933 788 765 979 1,299 1,260 c) Export credit component 1,344 1,468 1,727 1,784 1,945 2,143 0 0 0 0 0 of bilateral credit V. COMMERCIAL 1,80,480 1,72,045 2,01,826 2,06,574 2,19,534 2,17,121 2,25,797 2,21,026 2,50,594 2,91,673 2,99,685 BORROWINGS a) Commercial bank loans b 97,585 87,492 84,684 95,349 1,09,234 1,09,676 1,04,708 1,06,088 1,16,294 1,40,288 1,56,315 b) Securitized borrowings c 82,533 84,195 1,16,798 1,10,925 1,10,019 1,07,174 1,20,853 1,14,729 1,34,131 1,51,361 1,43,354 c) Loans/securitized borrowings etc., with 362 358 344 300 281 272 237 210 169 24 16 multilateral/bilateral guarantee + IFC(W) 73Sl. Components of External 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P No. Debt

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) VI.

NRI DEPOSITSd (Above 1,26,929 1,16,867 1,26,182 1,30,423 1,30,581 1,41,895 1,39,022 1,38,879 1,51,879 1,64,677 1,65,654 one year maturity) VII. RUPEE DEBTe 1,278 1,228 1,213 1,158 1,022 975 960 813 852 806 731 a) Defence 1,189 1,141 1,120 1,084 958 913 904 765 808 766 697 b) Civilian 89 87 83 74 64 62 56 48 44 40 34 VIII. TOTAL LONG-TERM 4,01,288 3,82,888 4,27,117 4,34,697 4,51,559 4,72,582 4,97,387 4,95,549 5,41,294 6,01,929 6,13,531 DEBT (I TO VII) IX. SHORT-TERM DEBT 83,504 88,124 1,02,173 1,08,415 1,06,878 1,01,081 1,21,688 1,28,379 1,27,589 1,34,490 1,49,234 a) Trade-Related Credits 80,022 86,489 1,00,389 1,02,409 1,01,384 97,254 1,17,359 1,23,898 1,23,065 1,30,219 1,43,963

1) Above 6 Months 51,208 56,155 66,297 52,476 51,603 46,903 48,098 60,802 57,672 55,230 63,643

2) Upto 6 Months 28,814 30,333 34,091 49,934 49,781 50,351 69,261 63,095 65,392 74,989 80,320 b) FII Investment in Govt.

Treasury Bills and other 20 40 89 1,735 1,723 1,696 2,101 1,998 1,402 1,157 313 instruments c) Investment in Treasury Bills by foreign central banks and other 238 243 275 263 242 266 256 229 214 194 241 international institutions etc.

d) External Debt Liabilities 3,225 1,352 1,420 4,008 3,529 1,865 1,972 2,254 2,909 2,921 4,718 of:

1) Central Bank 180 243 274 221 180 174 76 134 210 45 118

2) Commercial banks 3,045 1,110 1,146 3,787 3,349 1,691 1,897 2,120 2,699 2,876 4,600 X. GRAND TOTAL 4,84,791 4,71,012 5,29,290 5,43,112 5,58,437 5,73,663 6,19,076 6,23,928 6,68,883 7,36,419 7,62,766 (VIII+IX)

Memo Items:

Concessional Debtf 43,526 44,077 48,324 47,466 48,913 51,798 51,435 50,938 49,547 51,086 51,120 74Sl. Components of External 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P No. Debt

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Concessional Debt to total

9.0 9.4 9.1 8.7 8.8 9.0 8.3 8.2 7.4 6.9 6.7 external debt (per cent) Short-term debt 83,504 88,124 1,02,173 1,08,415 1,06,878 1,01,081 1,21,688 1,28,379 1,27,589 1,34,490 1,49,234 Short-term debt to total

17.2 18.7 19.3 20.0 19.1 17.6 19.7 20.6 19.1 18.3 19.6 external debt (per cent)

Source: Ministry of Finance (Department of Economic Affairs), Ministry of Defence, Reserve Bank of India, Securities & Exchange Board of India, Clearing Corporation of India.

R: Revised; PR: Partially Revised; P: Provisional.

IFC(W): International Finance Corporation, Washington D.C.

FII: Foreign Institutional Investors a: Relates to SDR allocations from March 2004 onwards. b: Includes Financial Lease since 1996. c: Also includes India Development Bonds (IDBs), Resurgent India Bonds (RIBs), India Millennium Deposits (IMDs), Foreign Currency Convertible Bonds (FCCBs) and net investment by 100% FII debt funds and securitized borrowings of commercial banks. FCCB debt has been adjusted since end-March, 1998 after netting out conversion into equity and redemptions.

d: Figures include accrued interest. e: Rupee denominated debt owed to Russia and payable through exports. f: The definition of concessional debt here includes 'concessional' categories under multilateral and bilateral debt and rupee debt under item VII.

Note: NRO Deposits are included under NRI Deposits from the quarter ended June 2005. Supplier’s Credits upto 180 days and FII investment in short-term debt instruments are included under short-term debt from the quarter ended March 2005. Vostro balances / Nostro overdrafts of commercial banks, balances of foreign central banks/international institutions with RBI and investment in T-bills/securities by foreign central banks/ international institutions have been included in external debt from the quarter ended March 2007.

75Annexure V: India's External Debt Outstanding (IMF's Format) - In Rupees (₹ Crore) Sector/Instrument 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) I. General Government 7,16,512 7,56,736 8,13,645 9,93,074 10,96,329 12,39,541 14,42,904 15,78,530 I.A. Short-term 1,820 1,822 1,955 6,780 5,314 1,873 2,345 2,294

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 1,820 1,822 1,955 6,780 5,314 1,873 2,345 2294

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 I.B. Long-term 7,14,691 7,54,913 8,11,690 9,86,294 10,91,015 12,37,668 14,40,559 15,76,236

(i) Special drawing rights (allocations) 38,202 40,931 41,442 1,73,415 1,83,021 1,82,587 1,87,735 212689

(ii) Currency and deposits 0 0 0 0 0 0 0 0

(iii) Debt securities 1,95,471 1,63,203 1,50,030 1,48,064 1,53,694 2,53,554 3,73,035 369436

(iv) Loans 4,68,722 5,36,215 6,04,645 6,64,815 7,54,301 8,01,527 8,79,788 994111

(v) Trade credit and advances 12,297 14,565 15,574 0 0 0 0 0

(vi) Other debt liabilities 0 0 0 0 0 0 0 0 II. Central Bank 1,529 1,357 1,282 574 1,102 1,747 385 1,117 II.A. Short-term 1,529 1,357 1,282 574 1,102 1,747 385 1,117

(i) Currency and deposits 1,529 1,357 1,282 574 1,102 1,747 385 1117

(ii) Debt securities 0 0 0 0 0 0 0 0

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 II.B. Long-term 0 0 0 0 0 0 0 0

(i) Special drawing rights (allocations) 0 0 0 0 0 0 0 0

(ii) Currency and deposits 0 0 0 0 0 0 0 0

(iii) Debt securities 0 0 0 0 0 0 0 0 76Sector/Instrument 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9)

(iv) Loans 0 0 0 0 0 0 0 0

(v) Trade credit and advances 0 0 0 0 0 0 0 0

(vi) Other debt liabilities 0 0 0 0 0 0 0 0 III. Deposit-taking Corporations, except the 11,36,534 11,84,993 11,65,216 12,08,763 13,43,342 15,57,518 17,30,423 19,12,586 Central Bank III.A. Short-term 26,193 25,248 12,429 14,379 17,433 22,504 24,609 43,538

(i) Currency and deposits 26,193 25,248 12,429 14,379 17,433 22,504 24,609 43538

(ii) Debt securities 0 0 0 0 0 0 0 0

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 III.B. Long-term 11,10,341 11,59,746 11,52,788 11,94,384 13,25,909 15,35,014 17,05,814 18,69,048

(i) Currency and deposits 9,02,152 9,77,309 10,27,382 10,59,041 11,41,818 12,66,272 14,09,330 1567984

(ii) Debt securities 44,014 52,602 43,327 51,623 53,919 56,995 68,833 72460

(iii) Loans 1,64,175 1,29,835 82,078 83,720 1,30,172 2,11,748 2,27,651 228604

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV. Other Sectors 17,81,849 20,82,621 20,27,144 22,88,306 24,45,817 25,11,677 28,30,948 33,68,404 IV.A. Short-term 7,20,382 7,77,281 7,27,330 9,00,751 10,31,641 10,37,636 11,23,646 13,65,616

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 12,003 12,990 12,467 11,087 12,991 11,599 9,215 2949

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 7,08,379 7,64,291 7,14,863 8,89,665 10,18,650 10,26,037 11,14,431 1362668

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.B. Long-term 10,61,467 13,05,340 12,99,814 13,87,555 14,14,176 14,74,041 17,07,301 20,02,788

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 3,82,228 5,04,568 5,36,322 6,33,406 6,36,249 6,36,218 6,60,014 717121

(iii) Loans 6,72,328 7,93,671 7,56,636 7,50,897 7,74,609 8,32,663 10,39,202 1277082 77Sector/Instrument 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9)

(iv) Trade credit and advances 6,910 7,101 6,856 3,251 3,318 5,161 8,085 8585

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.1. Other financial corporations 2,18,562 3,08,112 4,05,253 4,00,845 4,51,856 4,04,421 5,95,794 7,38,281 IV.1.A. Short-term 12,003 12,990 12,467 11,087 12,991 11,599 9,215 2,949

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 12,003 12,990 12,467 11,087 12,991 11,599 9,215 2949

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.1.B. Long-term 2,06,559 2,95,122 3,92,786 3,89,758 4,38,866 3,92,822 5,86,579 7,35,333

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 88,884 1,23,013 1,90,799 1,74,225 2,34,217 1,59,513 1,99,943 225523

(iii) Loans 1,17,675 1,72,108 2,01,987 2,15,533 2,04,649 2,33,310 3,86,636 509809

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.2. Non-financial corporations 15,63,093 17,74,326 16,21,724 18,87,342 19,93,862 21,07,174 22,35,075 26,30,048 IV.2.A. Short-term 7,08,379 7,64,291 7,14,863 8,89,665 10,18,650 10,26,037 11,14,431 13,62,668

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 0 0 0 0 0 0 0 0

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 7,08,379 7,64,291 7,14,863 8,89,665 10,18,650 10,26,037 11,14,431 1362668

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.2.B. Long-term 8,54,713 10,10,035 9,06,861 9,97,678 9,75,212 10,81,137 11,20,644 12,67,381

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 2,93,343 3,81,548 3,45,516 4,59,174 4,02,030 4,76,705 4,60,071 491598

(iii) Loans 5,54,460 6,21,386 5,54,489 5,35,252 5,69,864 5,99,271 6,52,487 767198

(iv) Trade credit and advances 6,910 7,101 6,856 3,251 3,318 5,161 8,085 8585

(v) Other debt liabilities 0 0 0 0 0 0 0 0 78Sector/Instrument 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) IV.3. Households and nonprofit institutions 194 183 167 119 98 82 78 75 serving households (NPISHs) IV.3.A. Short-term 0 0 0 0 0 0 0 0

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 0 0 0 0 0 0 0 0

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.3.B. Long-term 194 183 167 119 98 82 78 75

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 1 7 7 7 3 0 0 0

(iii) Loans 193 176 160 112 96 82 78 75

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 V. Direct Investment: Intercompany Lending 1,18,449 1,71,945 1,85,066 2,09,729 2,43,354 2,66,295 2,99,625 3,52,056 A. Debt liabilities of direct investment enterprises 1,18,449 1,71,945 1,85,066 2,09,729 2,43,354 2,66,295 2,99,625 352056 to direct investors B. Debt liabilities of direct investors to direct 0 0 0 0 0 0 0 0 investment enterprises C. Debt liabilities to fellow enterprises 0 0 0 0 0 0 0 0 GROSS EXTERNAL DEBT POSITION (I to V) 37,54,872 41,97,652 41,92,353 47,00,446 51,29,944 55,76,778 63,04,284 72,12,693

Source: Reserve Bank of India and Ministry of Finance.

R: Revised; PR: Partially Revised; P: Provisional 79Annexure VI: India's External Debt Outstanding (IMF's Format) - US Dollar (USD Million) Sector/Instrument 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) I. General Government 1,03,822 1,00,876 1,11,635 1,30,776 1,33,324 1,48,669 1,68,401 1,67,475 I.A. Short-term 263 242 266 894 646 225 274 242

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 263 242 266 894 646 225 274 242

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 I.B. Long-term 1,03,559 1,00,634 1,11,369 1,29,882 1,32,677 1,48,445 1,68,127 1,67,233

(i) Special drawing rights (allocations) 5,523 5,430 5,638 22,876 22,261 21,910 21,987 22,445

(ii) Currency and deposits 0 0 0 0 0 0 0 0

(iii) Debt securities 28,259 21,649 20,411 19,532 18,694 30,412 43,588 39,030

(iv) Loans 67,994 71,611 83,177 87,474 91,723 96,123 1,02,552 1,05,757

(v) Trade credit and advances 1,784 1,945 2,143 0 0 0 0 0

(vi) Other debt liabilities 0 0 0 0 0 0 0 0 II. Central Bank 221 180 174 76 134 210 45 118 II.A. Short-term 221 180 174 76 134 210 45 118

(i) Currency and deposits 221 180 174 76 134 210 45 118

(ii) Debt securities 0 0 0 0 0 0 0 0

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 II.B. Long-term 0 0 0 0 0 0 0 0

(i) Special drawing rights (allocations) 0 0 0 0 0 0 0 0

(ii) Currency and deposits 0 0 0 0 0 0 0 0

(iii) Debt securities 0 0 0 0 0 0 0 0 80Sector/Instrument 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9)

(iv) Loans 0 0 0 0 0 0 0 0

(v) Trade credit and advances 0 0 0 0 0 0 0 0

(vi) Other debt liabilities 0 0 0 0 0 0 0 0 III. Deposit-taking Corporations, except the Central 1,64,308 1,58,237 1,60,770 1,58,726 1,63,390 1,86,811 2,02,195 2,02,062 Bank III.A. Short-term 3,787 3,349 1,691 1,897 2,120 2,699 2,876 4,600

(i) Currency and deposits 3,787 3,349 1,691 1,897 2,120 2,699 2,876 4,600

(ii) Debt securities 0 0 0 0 0 0 0 0

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 III.B. Long-term 1,60,522 1,54,888 1,59,079 1,56,829 1,61,269 1,84,112 1,99,319 1,97,463

(i) Currency and deposits 1,30,423 1,30,581 1,41,895 1,39,022 1,38,879 1,51,879 1,64,677 1,65,654

(ii) Debt securities 6,363 6,978 5,894 6,810 6,558 6,836 8,043 7,655

(iii) Loans 23,736 17,330 11,290 10,998 15,833 25,397 26,599 24,154

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV. Other Sectors 2,57,637 2,76,335 2,75,906 3,01,832 2,97,481 3,01,253 3,30,768 3,55,916 IV.A. Short-term 1,04,145 1,03,107 98,950 1,18,821 1,25,478 1,24,456 1,31,296 1,44,274

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 1,735 1,723 1,696 1,462 1,580 1,391 1,077 312

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 1,02,409 1,01,384 97,254 1,17,359 1,23,898 1,23,065 1,30,219 1,43,963

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.B. Long-term 1,53,492 1,73,228 1,76,956 1,83,010 1,72,003 1,76,797 1,99,472 2,11,642

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 55,258 66,931 72,964 83,555 77,387 76,309 77,121 75,762

(iii) Loans 97,235 1,05,355 1,03,059 99,026 94,213 99,870 1,21,406 1,34,973 81Sector/Instrument 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9)

(iv) Trade credit and advances 999 942 933 429 404 619 945 907

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.1. Other financial corporations 31,608 40,893 55,166 52,870 54,958 48,507 69,613 78,010 IV.1.A. Short-term 1,735 1,723 1,696 1,462 1,580 1,391 1,077 312

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 1,735 1,723 1,696 1,462 1,580 1,391 1,077 312

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.1.B. Long-term 29,873 39,170 53,470 51,408 53,378 47,115 68,536 77,699

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 12,850 16,318 25,957 22,983 28,488 19,132 23,363 23,826

(iii) Loans 17,023 22,852 27,512 28,425 24,891 27,983 45,173 53,873

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.2. Non-financial corporations 2,26,001 2,35,418 2,20,718 2,48,946 2,42,511 2,52,737 2,61,146 2,77,898 IV.2.A. Short-term 1,02,409 1,01,384 97,254 1,17,359 1,23,898 1,23,065 1,30,219 1,43,963

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 0 0 0 0 0 0 0 0

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 1,02,409 1,01,384 97,254 1,17,359 1,23,898 1,23,065 1,30,219 1,43,963

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.2.B. Long-term 1,23,591 1,34,034 1,23,464 1,31,587 1,18,613 1,29,672 1,30,927 1,33,936

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 42,408 50,613 47,006 60,571 48,899 57,177 53,758 51,936

(iii) Loans 80,184 82,480 75,525 70,587 69,310 71,876 76,224 81,093

(iv) Trade credit and advances 999 942 933 429 404 619 945 907

(v) Other debt liabilities 0 0 0 0 0 0 0 0 82Sector/Instrument 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) IV.3. Households and nonprofit institutions 28 24 23 16 12 10 9 8 serving households (NPISHs) IV.3.A. Short-term 0 0 0 0 0 0 0 0

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 0 0 0 0 0 0 0 0

(iii) Loans 0 0 0 0 0 0 0 0

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 IV.3.B. Long-term 28 24 23 16 12 10 9 8

(i) Currency and deposits 0 0 0 0 0 0 0 0

(ii) Debt securities 0 1 1 1 0 0 0 0

(iii) Loans 28 23 22 15 12 10 9 8

(iv) Trade credit and advances 0 0 0 0 0 0 0 0

(v) Other debt liabilities 0 0 0 0 0 0 0 0 V. Direct Investment: Intercompany Lending 17,124 22,809 25,177 27,666 29,599 31,940 35,011 37,194 A. Debt liabilities of direct investment enterprises to 7,124 2,809 5,177 7,666 9,599 1,940 5,011 37,194 direct investors B. Debt liabilities of direct investors to direct 0 0 0 0 0 0 0 0 investment enterprises C. Debt liabilities to fellow enterprises 0 0 0 0 0 0 0 0 GROSS EXTERNAL DEBT POSITION (I to V) 5,43,112 5,58,437 5,73,663 6,19,076 6,23,928 6,68,883 7,36,419 7,62,766

Source: Reserve Bank of India and Ministry of Finance.

R: Revised; PR: Partially Revised; P: Provisional 83Annexure VII: External Debt by Borrower Classification (USD Million) S. No. Components 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) I Government Debt 93,567 95,779 1,11,937 1,03,823 1,00,876 1,11,635 1,30,776 1,33,324 1,48,669 1,68,401 1,67,475 (A+B) A Long-term (1+2): 93,329 95,680 1,11,662 1,03,560 1,00,634 1,11,369 1,29,882 1,32,677 1,48,445 1,68,127 1,67,233 1 Govt. Account 61,060 62,800 68,574 68,842 72,734 84,535 86,703 91,069 95,450 1,01,910 1,05,170 2 Other Govt. Debt (Long 32,269 32,880 43,088 34,717 27,901 26,834 43,178 41,608 52,995 66,217 62,062 term) B Other Govt Debt (Short- 238 99 275 263 242 266 894 646 225 274 242 term) II Non-Government Debt 3,91,224 3,75,233 4,17,354 4,39,290 4,61,430 4,62,028 4,88,296 4,90,604 5,20,214 5,68,018 5,95,291 (C+D) C Long-term (1+2): 3,07,957 2,87,352 3,15,456 3,31,137 3,54,794 3,61,213 3,67,502 3,62,871 3,92,849 4,33,802 4,46,299 1 Financial Sector* 1,59,629 1,47,174 1,69,008 1,90,394 2,00,570 2,13,349 2,08,991 2,15,860 2,32,709 2,69,384 2,77,287 2 Non-Financial Sector, of 1,48,328 1,40,178 1,46,448 1,40,743 1,54,224 1,47,864 1,58,511 1,47,011 1,60,140 1,64,418 1,69,012 which a. Public Sector** 33,385 28,578 29,493 34,147 32,364 32,645 32,068 29,427 26,675 27,365 25,679 b. Private Sector*** 1,14,943 1,11,600 1,16,954 1,06,596 1,21,860 1,15,218 1,26,443 1,17,585 1,33,466 1,37,053 1,43,334 D Short-term 83,267 87,881 1,01,898 1,08,152 1,06,636 1,00,815 1,20,794 1,27,732 1,27,364 1,34,216 1,48,992 III Total External Debt 4,84,791 4,71,012 5,29,291 5,43,112 5,62,306 5,73,663 6,19,072 6,23,928 6,68,883 7,36,419 7,62,766 (I+II) IV Share of Government debt in total debt (per 19.3 20.3 21.1 19.1 17.9 19.5 21.1 21.4 22.2 22.9 22.0 cent) V Share of Non- Government debt in 80.7 79.7 78.9 80.9 82.1 80.5 78.9 78.6 77.8 77.1 78.0 total debt (per cent)

Source: Based on data from RBI, SEBI, CCIL, CAAA and Ministry of Defence.

R: Revised; PR: Partially Revised; P: Provisional. * Financial sector represents borrowings by banks and financial institutions and also include long-term NRI Deposits. ** Public sector debt represents borrowings of non- financial public sector enterprises.

*** Private sector debt represents borrowings of non- financial private sector enterprises.

84Annexure VIII: Instrument-wise Classification of External Debt Outstanding at End-March 2026 (USD Million) INSTRUMENTS Sl.

Borrower Creditor Bonds & Loans Trade Deposits Total No.

Notes Credits

(1) (2) (3) (4) (5) (6) (7) (8)

I Government: 39,030 1,05,757 0 22,445 1,67,233 1 Multilateral 70,672 70,672 2 Bilateral 34,465 34,465 3 IMF (SDR) 22,445 22,445 4 Export Credit 0 0 5 Commerciala 39,030 39,030 6 Rupee Debt 620 620

II Financial Sectorb: 31,545 80,088 0 1,65,654 2,77,287 1 Multilateral 0 5,495 0 5,495 2 Bilateral 0 2,221 0 2,221 3 Export Credit 0 0 0 0 4 Commercial 31,545 72,372 0 1,03,916 5 NRI Deposits 1,65,654 1,65,654 III Non-Financial Public Sector 2,326 23,353 0 0 25,679 1 Multilateral 0 3,975 0 3,975 2 Bilateral 0 2,915 0 2,915 3 Export Credit 0 2 0 2 4 Commercial 2,326 16,350 0 18,676 5 Rupee Dept 110 110 IV Non-Financial Private Sector: 51,460 90,613 1,260 0 1,43,334 1 Multilateral 0 919 0 919 2 Bilateral 0 1,457 0 1,457 3 Export Credit 0 1,635 1,260 2,896 4 Commercial 51,460 86,602 0 1,38,062

Total Long Term External Debt:

1,24,361 2,99,811 1,260 1,88,099 6,13,531 V (I to IV) 1 Multilateral 0 81,061 0 0 81,061 2 Bilateral 0 41,058 0 0 41,058 3 IMF 0 0 0 22,445 22,445 4 Export Credit 0 1,637 1,260 0 2,898 5 Commercial 1,24,361 1,75,324 0 0 2,99,685 6 NRI Deposits 0 0 0 1,65,654 1,65,654 7 Rupee Debt 0 731 0 0 731

VI Total Short Term External Debt: 554 0 1,43,963 4,718 1,49,234 1 Export Credit 1,43,963 1,43,963 2 Commercial 554 4,718 5,272

Memo Items:

Borrower Category

I Government: 39,030 1,05,757 0 22,445 1,67,233

II Financial Sector: 31,545 80,088 0 1,65,654 2,77,287 III Non-Financial Public Sector 2,326 23,353 0 0 25,679 85INSTRUMENTS Sl.

Borrower Creditor Bonds & Loans Trade Deposits Total No.

Notes Credits

(1) (2) (3) (4) (5) (6) (7) (8) IV Non-Financial Private Sector 51,460 90,613 1,260 0 1,43,334 V Total Long-Term Debt: 1,24,361 2,99,811 1,260 1,88,099 6,13,531

VI Government: 242 242

VII Financial Sector: 312 4,718 5,029 VIII Non-Financial Sector 1,43,963 1,43,963 IX Total Short-Term Debt 554 0 1,43,963 4,718 1,49,234

Note: The central bank, i.e., Reserve Bank of India has no external debt liability. a: Includes investment by FII in Central Government domestic debt securities and treasury bills. b: Financial sector includes financial development institutions, commercial banks and non-banking financial companies.

86Annexure IX: Composition of External Debt: Currency-Wise (Per cent) Sl. No. Currency 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 1 US Dollar 58.3 57.1 52.1 49.5 50.4 53.6 51.6 53.1 54.6 54.1 54.2 55.5 2 Indian Rupee 27.8 28.9 33.6 35.8 35.7 31.9 33.9 31.1 29.8 31.3 31.0 29.4 3 Japanese Yen 4.0 4.4 4.6 4.7 5.0 5.6 5.8 5.4 5.7 5.8 6.2 6.4 4 SDR 5.8 5.8 5.8 5.5 4.9 4.5 4.4 6.6 6.1 5.3 4.6 4.3 5 Euro 2.3 2.5 2.9 3.4 3.1 3.5 3.5 2.9 3.2 2.8 3.2 3.7 6 Others 0.9 0.5 0.4 0.5 0.4 0.4 0.5 0.4 0.3 0.4 0.5 0.5 7 Pound Sterling 0.9 0.8 0.6 0.6 0.5 0.4 0.4 0.5 0.3 0.3 0.3 0.3 Total (1 to 7) 100 100 100 100 100 100 100 100 100 100 100 100

Source: Based on data from RBI, CAAA, SEBI, CCIL and Ministry of Defence.

R: Revised; PR: Partially Revised; P: Provisional.

87Annexure X: Short-term debt by residual maturity (USD Billion) Year Short-term Long-term Post facto Ratio of Ratio of Ratio of debt debt Short-term residual residual residual (Original repayment debt short-term short-term short-term Maturity) obligations Residual debt to total debt to debt to maturing in Maturity debt (per Foreign Foreign one year (2+3) cent) Currency Exchange Assets (per Reserves cent) (per cent)

(1) (2) (3) (4) (5) (6) (7) 2008-09 49 44 93 38.8 36.1 37.0 2009-10 52 55 108 41.2 42.2 38.6 2010-11 65 64 129 40.6 47.0 42.3 2011-12 78 69 147 40.9 56.7 50.1 2012-13 97 76 172 42.1 66.4 59.0 2013-14 92 85 177 39.7 64.1 58.2 2014-15 85 97 183 38.5 57.6 53.5 2015-16 84 123 207 42.7 61.6 57.4 2016-17 88 108 196 41.6 56.6 52.9 2017-18 102 120 222 42.0 55.6 52.3 2018-19 108 127 236 43.4 61.1 57.0 2019-20 107 130 237 42.4 53.5 49.5 2020-21 101 152 253 44.1 47.4 43.8 2021-22 122 146 268 43.2 49.5 44.0 2022-23 128 146 274 43.9 53.8 47.4 2023-24 128 162 290 42.9 50.8 44.9 2024-25 134 169 303.7 41.2 53.5 45.4 2025-26 149 178 326.9 42.9 59.2 47.3

Source: RBI 88Annexure XI: Creditor-wise Sovereign External Debt – Rupees (Rs. Crore) Sl.

Category 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P No.

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) External Debt on Govt. Account under I. 4,06,576 4,08,070 4,45,288 4,74,817 5,44,783 6,14,447 6,58,971 7,48,926 7,95,917 8,74,300 9,88,557 External Assistance (A+B) A. Multilateral (1 to 9) 2,94,109 2,88,220 3,04,594 3,20,331 3,62,042 4,19,319 4,60,547 5,21,803 5,56,039 5,97,746 6,64,284 1 ADB 66,063 70,151 76,809 87,612 1,03,062 1,17,207 1,35,231 1,61,224 1,79,159 1,96,187 2,20,857 2 IBRD 61,546 60,644 61,661 67,244 82,796 99,216 1,13,578 1,35,746 1,56,760 1,81,785 2,02,840 3 IDA 1,63,766 1,54,048 1,60,970 1,57,188 1,62,506 1,61,408 1,57,206 1,53,737 1,38,007 1,23,731 1,17,484 4 AIIB - - 374 1,608 2,643 11,724 20,230 28,747 35,537 41,075 52,509 5 NDB - - 139 1,119 3,512 21,226 24,762 29,793 32,276 36,979 45,343 6 EIB - 702 1,609 2,328 3,728 4,703 5,617 8,488 10,133 13,538 20,101 7 IFAD 2,458 2,423 2,786 3,003 3,578 3,638 3,749 3,915 4,037 4,227 4,809 8 OPEC 147 149 137 131 126 106 94 84 67 169 288 9 EECS 130 103 109 99 91 89 79 71 64 57 53 B. Bilateral (10 to 16) 1,12,467 1,19,849 1,40,694 1,54,486 1,82,741 1,95,129 1,98,424 2,27,123 2,39,878 2,76,553 3,24,273 10 Japan 90,112 97,433 1,12,650 1,22,498 1,44,456 1,47,581 1,48,400 1,69,381 1,72,802 1,99,968 2,28,108 11 Russian Federation 5,093 5,848 7,453 10,881 13,821 15,722 19,664 25,448 32,305 37,591 45,855 12 Germany 13,575 12,597 15,398 15,466 17,433 22,928 21,747 22,615 23,902 26,614 34,245 13 France 2,468 2,958 4,345 4,914 6,423 8,470 8,262 9,402 9,852 11,409 15,122 14 Korea - - - - - - - - 834 858 940 15 United States 1,215 1,010 846 725 605 425 348 274 180 111 - 16 Others 5 2 2 2 2 2 2 2 3 3 3 Total Other Govt.

II. 2,14,765 2,13,882 2,81,599 2,41,964 2,12,153 1,99,198 3,34,103 3,47,404 4,43,624 5,68,604 5,89,974 External Debt [C+D] C. Other Govt. External 2,14,051 2,13,240 2,79,813 2,40,143 2,10,331 1,97,243 3,27,323 3,42,089 4,41,751 5,66,259 5,87,680 Debt (Long-term) 89Sl.

Category 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P No.

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) D. Other Govt. External 714 642 1,786 1,820 1,822 1,955 6,780 5,314 1,873 2,345 2,294 Debt (Short-term) Total Government III. 6,21,341 6,21,952 7,26,887 7,16,781 7,56,936 8,13,645 9,93,074 10,96,329 12,39,541 14,42,904 15,78,530 External Debt (I+II) IV. Total External Debt 32,17,563 30,55,095 34,41,960 37,54,872 41,97,652 41,92,353 47,00,446 51,29,944 55,76,778 63,04,284 72,12,693

Memo Items: a) Total Sovereign External Debt to GDP 5.3 4.7 4.4 4.3 4.9 4.1 4.2 4.2 4.3 4.5 4.6 (%) b) Total External

3.2 3.1 3.2 3.3 3.3 3.1 2.8 2.9 2.7 2.7 2.9 Assistance to GDP (%)

Source: Based on data received from RBI, CCIL, CAAA and Ministry of Defence.

R: Revised; PR: Partially Revised; P: Provisional.

90Annexure XII: Creditor-wise Sovereign External Debt – US Dollar (USD Million) Sl. No. Category 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) I. External Debt on Govt. Account 61,059 62,794 68,574 68,881 72,761 84,535 86,703 91,069 95,450 1,01,910 1,05,170 under External Assistance (A+B) Multilateral (1 to A. 44,169 44,352 46,907 46,470 48,354 57,689 60,596 63,451 66,683 69,675 70,672

9) Multilateral Credit as percent of Govt. 72.3 70.6 68.4 67.5 66.5 68.2 69.9 69.7 69.9 68.4 67.2 Account debt 1 ADB 9,921 10,795 11,828 12,710 13,765 16,125 17,793 19,605 21,486 22,868 23,497 2 IBRD 9,243 9,332 9,496 9,755 11,058 13,650 14,944 16,507 18,799 21,189 21,580 3 IDA 24,594 23,705 24,789 22,803 21,704 22,206 20,684 18,694 16,550 14,422 12,499 4 AIIB - - 58 233 353 1,613 2,662 3,496 4,262 4,788 5,586 5 NDB - - 21 162 469 2,920 3,258 3,623 3,871 4,310 4,824 6 EIB - 108 248 338 498 647 739 1,032 1,215 1,578 2,139 7 IFAD 369 373 429 436 478 501 493 476 484 493 512 8 OPEC 22 23 21 19 17 15 12 10 8 20 31 9 EECS 20 16 17 14 12 12 10 9 8 7 6 Bilateral (10 to B. 16,890 18,443 21,667 22,411 24,407 26,846 26,107 27,618 28,767 32,236 34,499

16) a Bilateral Credit as percent of Govt. 27.7 29.4 31.6 32.5 33.5 31.8 30.1 30.3 30.1 31.6 32.8 Account debt 10 Japan 13,533 14,993 17,348 17,771 19,293 20,304 19,526 20,597 20,723 23,309 24,268 11 Russian Federation 765 900 1,148 1,579 1,846 2,163 2,587 3,095 3,874 4,382 4,878 91Sl. No. Category 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 12 Germany 2,039 1,938 2,371 2,244 2,328 3,154 2,861 2,750 2,866 3,102 3,643 13 France 371 455 669 713 858 1,165 1,087 1,143 1,182 1,330 1,609 14 Korea - - - - - - - - 100 100 100 15 United States 182 155 130 105 81 59 46 33 22 13 - 16 Others 1 0 0 0 0 0 0 0 0 0 0 II. Total Other Govt.

External Debt 32,507 32,979 43,363 34,980 28,142 27,100 44,073 42,254 53,219 66,491 62,304 (C+D) Other Govt.

C. External Debt 32,269 32,880 43,088 34,717 27,901 26,834 43,178 41,608 52,995 66,217 62,062 (Long term) Other Govt.

D. External Debt 238 99 275 263 242 266 894 646 225 274 242 (Short-term) III. Total Sovereign External Debt 93,566 95,773 1,11,937 1,03,861 1,00,903 1,11,635 1,30,776 1,33,324 1,48,669 1,68,401 1,67,475 (I+II)

Source: Based on the data from RBI, CAAA, CCIL and Ministry of Defence a: Includes civilian component of rupee debt.

R: Revised; PR: Partially Revised; P: Provisional.

92Annexure XIII: Currency Composition of Sovereign External Debt (Per cent) Sl. No. Currency 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 1 US Dollar 24.4 24.0 24.4 22.1 25.8 29.8 35.5 34.1 37.3 37.4 35.8 37.3 2 Indian Rupee 28.8 28.7 28.9 33.7 28.4 22.5 19.2 16.2 15.0 21.1 26.5 23.8 3 SDR 30.8 30.2 28.5 25.8 25.5 24.9 22.6 31.1 28.5 24.0 20.0 19.4 4 Japanese Yen 13.4 14.5 15.7 15.5 17.1 19.1 18.2 14.9 15.4 13.9 14.1 15.0 5 Euro 2.6 2.6 2.5 2.9 3.2 3.7 4.4 3.6 3.7 3.5 3.6 4.4 6 Pound sterling 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 7 Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total (1 to 7) 100 100 100 100 100 100 100 100 100 100 100 100

Source: Based on data received from RBI, CAAA, SEBI and Ministry of Defence.

R: Revised; PR: Partially Revised; P: Provisional.

93Annexure XIV: Sovereign External Debt Service Payments (USD Million) Sl. Debt Service Payments 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 No. R PR P

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) I. Debt Service Payments under 4,091 4,823 5,023 5,632 5,770 5,882 5,542 6,396 8,991 10,444 10,424 Government Account (A+B) A Multilateral (i + ii) 2,935 3,500 3,719 4,241 4,363 4,465 4,250 5,042 7,540 8,797 8,818 i. Principal 2,600 3,001 3,092 3,382 3,411 3,482 3,420 3,799 4,487 5,259 5,752 ii. Interesta 335 499 627 860 952 983 830 1,243 3,053 3,539 3,067 B Bilateral (iii +iv) 1,156 1,323 1,304 1,391 1,407 1,416 1,293 1,354 1,450 1,647 1,605 iii. Principal 901 1,031 1,017 1,077 1,115 402 389 1,057 1,129 1,204 1,217 iv. Interest 255 292 287 314 292 1,014 903 297 321 442 388 II. Other Government Debt 73 99 75 1,134 2,572 2,481 1,399 1,437 1,016 765 580 Service Payments (v + vi) v. Principal 73 99 75 32 387 1,054 271 602 153 277 113 vi. Interest 0 0 0 1,102 2,184 1,426 1,128 835 863 488 467 III. Total Government External 4,164 4,922 5,098 5,663 6,328 7,384 6,759 7,832 10,006 11,209 11,004 Debt Service Payments (I+II) vii. Total Principal (i + iii + v) 3,574 4,130 4,184 4,491 4,607 3,960 3,898 5,457 5,769 6,740 7,082 viii. Total Interest (ii + iv + vi) 590 792 914 1,173 1,721 3,424 2,861 2,375 4,237 4,469 3,922

Note: 1. Debt service payments on account of FII investment in Government securities and defence debt are not included till 2017-18

2. Debt service payments on account of Investment in Treasury Bills by foreign central banks and international institutions etc. and SDR are not included. a: Though IDA loans are interest-free, the service charges associated with it are treated as ‘interest payments.’ R: Revised; PR: Partially Revised; P: Provisional.

94Annexure XV: Creditor-wise External Debt Service Payments on Government Account under External Assistance (USD Million) Sl. 2022-23 2023-24 (R) 2024-25 (PR) 2025-26 (P) No. Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total I. External Debt on Govt. Account 4,855 1,540 6,396 5,616 3,374 8,991 6,463 3,981 10,444 6,969 3,455 10,424 under External Assistance (A+B) A. Multilateral* (1 3,799 1,243 5,042 4,487 3,053 7,540 5,259 3,539 8,797 5,752 3,067 8,818 to 9) 1 ADB 884 382 1,266 1,188 1,157 2,345 1,586 1,302 2,889 1,749 1,110 2,859 2 IDA 1,850 220 2,070 2,073 338 2,411 2,184 328 2,512 2,152 271 2,423 3 IBRD 955 422 1,377 1,024 1,024 2,048 1,176 1,267 2,443 1,382 1,100 2,482 4 AIIB 26 81 107 66 234 300 145 293 437 230 266 496 5 NDB 36 129 165 68 254 322 86 278 364 157 255 412 6 EIB 19 5 24 36 41 77 49 64 113 50 56 106 7 IFAD 25 5 30 29 5 34 29 7 36 29 7 36 8 OPEC 2 0 2 2 1 3 2 1 3 2 1 3 9 EEC (SAC) 1 0 1 1 0 1 1 0 1 1 0 1 B. Bilateral (10 to 1,057 297 1,354 1,129 321 1,450 1,204 442 1,647 1,217 388 1,605

16) 10 Japan 758 190 948 769 184 953 794 184 978 750 176 927 11 Germany 215 28 243 271 44 315 313 48 362 345 54 398 12 France 64 15 79 78 45 123 81 52 133 103 47 150 13 Russian 7 63 70 0 46 46 7 157 164 7 110 117 Federation 14 USA 12 1 14 12 1 13 9 1 9 12 0 12 15 South Korea 0 0 0 0 0 0 0 1 1 0 1 1 16 Switzerland 0 0 0 0 0 0 0 0 0 0 0 0

Source: CAAA R: Revised; PR: Partially Revised; P: Provisional. *Note: It may be noted that in year 2017-18, three (3) multilateral agencies i.e. European Investment Bank (EIB), New Development Bank (NDB) (with USD 0.33 million Interest on Government Account) and Asian Infrastructure Investment Bank (AIIB) (with US$0.98 Interest on Government Account) were newly added in the creditor list.

95Annexure XVI: Central Government Guarantees on External Debt (USD Million) Sl. No. Component 2016 2017 2018 2019 2020 2021 2022 2023 2024 R 2025 PR 2026 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 1 Government Debt 93,567 95,779 1,11,937 1,03,823 1,00,876 1,11,635 1,30,776 1,33,324 1,48,669 1,68,401 1,67,475 2 Non-Government Debt 3,91,224 3,75,233 4,17,354 4,39,290 4,57,561 4,62,028 4,88,300 4,90,604 5,20,214 5,68,018 5,95,291 of which with 3 Government 10,086 10,171 10,540 11,420 11,469 11,673 11,357 11,049 10,433 9,760 8,112 Guaranteed*: (a+b+c) a. Financial Sector 2,657 3,791 3,315 3,133 3,552 3,486 3,277 3,093 2,842 2,305 2,188 b. Public Sector 7,411 6,236 7,004 7,957 7,917 8,188 8,080 7,956 7,591 7,455 5,924 c. Private Sector 18 144 221 330 0 0 0 0 0 0 0 Total External Debt 4 4,84,791 4,71,012 5,29,291 5,43,112 5,58,437 5,73,663 6,19,076 6,23,928 6,68,883 7,36,419 7,62,766 (1+2) Government and Government 5 1,03,523 1,05,950 1,22,477 1,15,243 1,12,345 1,23,308 1,42,133 1,44,373 1,59,102 1,78,161 1,75,587 Guaranteed Debt (1+3)

Memo Items:

Govt. and Government Guaranteed Debt to A. 21.3 21.8 23.1 21.2 20.1 21.5 23.0 23.1 23.8 24.2 23.0 Total External Debt (Per cent) Govt. Guaranteed Debt B. to Total External Debt 2.1 2.1 2.0 2.1 2.1 2.0 1.8 1.8 1.6 1.3 1.1 (Per cent) Govt. Guaranteed to C. Total Non-Govt. Debt 2.6 2.6 2.5 2.6 2.5 2.5 2.3 2.3 2.0 1.7 1.4 (Per cent)

Source: Based on the data from RBI, CAAA, SEBI, CCIL and Ministry of Defence.

R: Revised; PR: Partially Revised; P: Provisional. *Direct Credit guarantees on non-government external debt provided by the Central Government.

96Annexure XVII: Projections of External Debt Service Payments on Sovereign Debt - Creditor-wise (USD Million) Component 2026-27 Total of 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034 2026-27 onwards (Apr- (Jul- (Oct- (Jan- Jun) Sep) Dec) Mar)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) Multilateral Principal 1917 1314 2190 1384 6805 6898 7242 7556 7059 6832 6409 6131 15738 Interest 2096 841 1106 670 4713 3595 3571 3438 3222 2973 2691 2394 12074 Bilateral Principal 279 472 325 442 1518 1619 2370 2689 2899 2945 2890 2876 14702 Interest 82 168 88 96 434 474 509 504 502 450 433 414 2094 Other Govt Debt * Principal 532 48 1299 2 1882 3233 3796 2469 3632 3593 2849 2729 14849 Interest 823 534 808 532 2697 2500 2293 2046 1840 1621 1382 1149 9840 Total Principal 2729 1834 3815 1828 10206 11749 13409 12714 13590 13370 12149 11737 45288 Interest 3001 1543 2002 1298 7844 6569 6373 5989 5564 5044 4506 3957 24008

Source: CAAA and CCIL * Converted into USD million with the exchange rate as on 30th March 2026.

Note: 1. Bilateral includes export credit component of bilateral credit and civilian rupee debt.

2. Other Govt. Debt includes FPI investment of Govt Securities and State Development Loans

3. Debt Service Payment for SDR and Defence Debt are not included in this table.

4. The projections do not include debt service arising out of Committed Undisbursed Balance (CUB) and fresh borrowings.

97Annexure XVIII: India's External Debt Service Payments - Source-wise (USD Million) S. 2023-24 2024-25 Source Component 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2025-26 P No. R PR

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 1 External Assistancea 5,071 5,672 6,380 6,918 6,956 6,548 7,672 9,925 11,925 12,822 Repayments 4,251 4,650 5,073 5,466 5,649 5,560 5,963 6,188 7,672 9,004 Interest 820 1,022 1,307 1,452 1,308 988 1,709 3,736 4,253 3,818 2 Commercial Borrowings 32,562 33,379 28,076 28,295 37,781 30,241 35,285 45,494 46,572 40,972 Repayments 25,642 25,386 18,531 17,625 28,285 20,819 23,549 29,929 29,512 24,349 Interest 6,920 7,993 9,545 10,670 9,496 9,422 11,736 15,565 17,060 16,623 3 Non-resident Deposits 5,612 5,495 6,434 6,508 4,609 4,718 6,214 7,731 8,948 8,798 Interest 5,612 5,495 6,434 6,508 4,609 4,718 6,214 7,731 8,948 8,798 4 Rupee Debt Service 99 75 31 69 64 71 68 72 70 70 Repayments 99 75 31 69 64 71 68 72 70 70 5 Total Debt Service 43,344 44,621 40,921 41,790 49,410 41,578 49,239 63,222 67,515 62,662 Repayments 29,992 30,111 23,635 23,160 33,998 26,450 29,580 36,190 37,254 33,423 Interest 13,351 14,510 17,286 18,629 15,413 15,128 19,659 27,033 30,262 29,238

Memo Items:

Current Receipts 5,21,921 5,92,050 6,43,472 6,41,982 6,03,410 7,98,569 9,21,712 9,42,672 10,18,463 10,77,588 Debt Service Ratio (%) 8.3 7.5 6.4 6.5 8.2 5.2 5.3 6.7 6.6 5.8 Interest to Current Receipts Ratio (%) 2.6 2.5 2.7 2.9 2.6 1.9 2.1 2.9 3.0 2.7

Source: RBI R: Revised; PR: Partially Revised; P: Provisional. a: Inclusive of non-government account figures supplied by the Office of Controller of Aid Accounts & Audit, DEA, Ministry of Finance.

98Annexure XIX: India's External Debt Service Payments by Creditor Category (USD Million) Sl. No. Creditor Category 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 R 2024-25 PR 2025-26 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) 1 Multilateral: 3,956 4,823 4,975 5,677 5,688 5,309 5,199 9,020 10,966 11,651 Principal 3,384 4,062 4,016 4,354 4,375 4,224 4,379 5,406 6,887 7,954 Interest 572 761 960 1,322 1,314 1,085 820 3,614 4,080 3,698 2 Bilateral: 2,374 2,726 2,765 2,652 2,357 2,384 2,282 2,229 2,817 2,784 Principal 1,870 2,189 2,283 2,025 1,928 1,910 1,841 1,725 2,197 2,243 Interest 504 537 482 627 429 473 442 504 620 541 3 Export Credit: 3,018 2,292 1,908 1,956 1,310 1,684 658 585 500 517 Principal 2,517 1,842 1,482 1,414 1,038 1,543 580 344 294 314 Interest 501 450 426 542 272 141 78 241 207 203 Commercial 4 29,009 27,792 29,403 24,171 26,204 36,503 29,220 43,622 44,214 38,841 Borrowings*:

Principal 23,044 21,800 22,256 15,810 16,097 27,397 20,150 28,663 27,806 22,843 Interest 5,965 5,992 7,147 8,361 10,106 9,105 9,069 14,959 16,407 15,998 5 NRI Deposits: 5,901 5,612 5,495 6,434 6,508 4,609 4,718 7,731 8,948 8,798 Interesta 5,901 5,612 5,495 6,434 6,508 4,609 4,718 7731 8,948 8,798 6 Rupee Debt: 73 99 75 31 69 64 71 72 70 70 Principal 73 99 75 31 69 64 71 72 70 70

Total Debt Service: 44,331 43,344 44,621 40,921 42,136 50,552 42,149 63,260 67,515 62,662 Principal 30,888 29,992 30,111 23,635 23,507 35,139 27,021 36,211 37,254 33,423 Interest 13,443 13,352 14,510 17,286 18,629 15,413 15,128 27,050 30,262 29,238

Memo Items:

I Current Receipts 5,00,972 5,21,921 5,92,050 6,43,472 6,41,982 6,03,410 7,98,569 9,42,672 10,18,463 10,77,588 II Debt Service Ratio (%) 8.8 8.3 7.5 6.4 6.6 8.2 5.2 6.7 6.6 5.8 99Sl. No. Creditor Category 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 R 2024-25 PR 2025-26 P

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) Interest to Current III 2.7 2.6 2.5 2.7 2.9 2.6 1.9 2.9 3.0 2.7 Receipts Ratio (%)

Source: Ministry of Finance (Department of Economic Affairs), Ministry of Defence, Reserve Bank of India, Securities & Exchange Board of India.

R: Revised; PR: Partially Revised; P: Provisional.

Note: 1) This corresponds to the creditor-wise debt outstanding i.e. major heads of debt outstanding as per Annex 3 & 4 (Annual).

2) Figures for debt service and interest payments is calculated on cash payment basis except for Non-Resident Indian Deposits for which accrual method is used. The estimates may, therefore, differ from BOP data compilation methodology.

a: Interest payments on NRI Deposits include both long term and short-term external debt component of NRI Deposits. *: Commercial borrowings include total of ECB through bank loans and securitised instruments 100Annexure XX: International Comparison of Top Low- and Middle- Income Debtor Countries, 2024 Sl. Country ED stock, Present Total ED Present value Total Present Short- Foreign Short Short term No. total (USD value of to exports of debt to ED to value of term debt exchange term debt debt to Millions) ED (USD of goods exports of GNI (%) debt to (USD reserves/ to total Foreign Millions) and service goods and GNI (%) Millions) total debt debt (%) Exchange (%) service (%) (%) Reserves (%)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) 1 China 24,19,835 4,71,973 59.0 11.5 13.0 2.5 13,05,872 142.8 54.0 37.8 2 India 7,16,456 2,05,579 82.1 23.5 18.6 5.3 1,39,568 88.7 19.5 22.0 3 Brazil 6,05,464 1,80,262 141.9 42.2 28.7 8.5 84,282 54.5 13.9 25.6 4 Mexico 5,91,255 2,75,578 84.0 39.2 32.9 15.3 61,174 39.2 10.3 26.4 5 Turkiye 5,14,989 1,49,003 134.7 39.0 39.4 11.4 1,78,134 30.1 34.6 114.8 6 Indonesia 4,21,059 2,24,134 135.4 72.1 31.0 16.5 65,123 37.0 15.5 41.8 7 Argentina 2,42,357 67,532 234.8 65.4 39.1 10.9 48,583 12.2 20.0 164.2 8 Colombia 2,01,764 1,02,806 256.4 130.6 49.2 25.1 19,053 30.7 9.4 30.8 9 Ukraine 1,93,492 91,730 296.4 140.5 101.3 48.0 18,326 22.6 9.5 41.8 10 Thailand 1,91,827 30,298 49.9 7.9 37.5 5.9 69,392 123.6 36.2 29.3 11 South Africa 1,75,896 94,135 127.1 68.0 44.8 24.0 46,828 37.2 26.6 71.5 12 Kazakhstan 1,67,535 31,664 175.1 33.1 62.6 11.8 19,594 27.4 11.7 42.8 13 Egypt 1,55,973 97,261 233.3 145.5 42.0 26.2 30,995 28.8 19.9 69.0 14 Philippines 1,37,018 65,963 109.8 52.9 26.3 12.6 20,945 77.5 15.3 19.7 15 Viet Nam 1,32,907 27,065 30.6 6.2 28.8 5.9 37,087 63.1 27.9 44.2 16 Pakistan 1,29,718 80,399 314.6 195.0 35.6 22.1 9,609 14.2 7.4 52.2 17 Nigeria 1,08,758 43,381 177.1 70.6 60.0 24.0 22,227 37.2 20.4 55.0 18 Bangladesh 1,04,487 57,654 191.6 105.7 22.3 12.3 12,945 20.5 12.4 60.5 19 Peru 93,269 41,185 104.8 46.3 34.2 15.1 10,474 85.0 11.2 13.2 20 Uzbekistan 70,256 32,500 220.6 102.1 60.5 28.0 5,699 58.6 8.1 13.8

Note: The order of the countries is the ranking of total external debt stock appearing in column No.3.

Source: International Debt Statistics, 2025.

101Annexure XXI: Gross External Debt Position of Top Twenty Developing Countries (USD Million) 2024 Q4 (End-December 2024) 2025 Q3 (End-September 2025) 2025 Q4 (End-December 2025) Short- Short- Short- Term Term Term Sl. Country ED to ED to Short Long Debt to Short Long Debt to Short Long Debt to No. Name Total GDP Total Total GDP Run Run Total Run Run Total Run Run Total ratio Ratio Debt Debt) Debt (%) (%) (%)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) 1 China 1254538 1089811 2344350 53.5 12.4 1308505 1061307 2369812 55.2 1259838 1068991 2328829 54.1 11.9 2 Brazil 84282 633664 717946 11.7 32.8 104429 699789 804218 13.0 112523 706947 819469 13.7 35.9 3 India 140043 578578 718620 19.5 19.1 138040 609183 747223 18.5 152637 614789 767426 19.9 19.6 4 Mexico 62892 527244 590136 10.7 32.2 58893 598790 657683 9.0 62077 583449 645527 9.6 35.2 5 Poland 82139 379268 461407 17.8 50.3 83230 452115 535345 15.5 79051 466703 545754 14.5 52.7 6 Turkiye 171264 288930 460194 37.2 33.9 164970 335598 500568 33.0 165772 354710 520482 31.8 32.6 Saudi 7 85547 284456 370003 23.1 29.5 91139 366196 457335 19.9 94437 384481 478918 19.7 37.5 Arabia 8 Indonesia 47912 376243 424155 11.3 30.4 45481 382067 427548 10.6 46850 386335 433185 10.8 30.0 9 Malaysia 128827 166926 302058 42.6 71.5 141245 180365 328223 43.0 146852 190495 343973 42.7 72.8 10 Argentina 27952 248379 276332 10.1 43.4 32727 285401 318128 10.3 32046 287476 319522 10.0 46.9 11 Hungary 29413 267202 296615 9.9 133.1 29819 272774 302593 9.9 37515 275423 312939 12.0 126.8 Russian 12 115476 174274 289750 39.9 13.3 128765 181417 310182 41.5 133185 173582 306767 43.4 11.9 Federation 13 Chile 19321 225667 244989 7.9 74.2 27487 241414 268901 10.2 26683 250738 277421 9.6 78.1 14 Romania 21540 189886 211426 10.2 55.3 23965 235495 259461 9.2 24872 243572 268444 9.3 62.7 15 Colombia 18797 182908 201705 9.3 48.0 19805 214071 233876 8.5 20148 226653 246801 8.2 54.0 1022024 Q4 (End-December 2024) 2025 Q3 (End-September 2025) 2025 Q4 (End-December 2025) Short- Short- Short- Term Term Term Sl. Country ED to ED to Short Long Debt to Short Long Debt to Short Long Debt to No. Name Total GDP Total Total GDP Run Run Total Run Run Total Run Run Total ratio Ratio Debt Debt) Debt (%) (%) (%)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) 16 Ukraine 10934 169705 180639 6.1 94.7 14363 202791 217154 6.6 13643 223020 236663 5.8 111.1 17 Thailand 71420 124013 195433 36.5 36.9 68531 134252 202783 33.8 70893 138323 209215 33.9 36.3 South 18 36745 131608 168354 21.8 42.0 47100 145947 193047 24.4 49606 150701 200307 24.8 46.9 Africa 19 Mauritius 11130 178661 189791 5.9 1266.5 11657 172054 183711 6.3 12383 179689 192072 6.4 1191.1 20 Kazakhstan 19528 145154 164683 11.9 56.5 20928 150630 171558 12.2 21688 160153 181842 11.9 60.1

Note: The order of the countries’ is the ranking of total external debt stock.

Source: Quarterly External Debt Statistics (QEDS), World Bank and World Economic Outlook (WEO), IMF 103Annexure XXII: Gross External Debt Position of BRICS Countries (USD Million) 2024 Q4 (End-December 2024) 2025 Q3 (End-September 2025) 2025 Q4 (End-December 2025) Ratio of Ratio of Ratio of Short- Short- Short- Sl. Country External External Term Term Term No. Name Short Long Debt to Short Long Short Long Debt to Total Debt to Total Debt to Total Debt to Run Run GDP Run Run Run Run GDP Total Total Total ratio Ratio Debt Debt Debt (%) (%) (%)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) 1 China 1254538 1089811 2344350 53.5 12.4 1308505 1061307 2369812 55.2 1259838 1068991 2328829 54.1 11.9 2 Brazil 84282 633664 717946 11.7 32.8 104429 699789 804218 13.0 112523 706947 819469 13.7 35.9 3 India 140043 578578 718620 19.5 19.1 138040 609183 747223 18.5 152637 614789 767426 19.9 19.6 Russian 4 115476 174274 289750 39.9 13.3 128765 181417 310182 41.5 133185 173582 306767 43.4 11.9 Federation South 5 36745 131608 168354 21.8 42.0 47100 145947 193047 24.4 49606 150701 200307 24.8 46.9 Africa

Note: The order of the countries’ is the ranking of total external debt stock.

Source: Quarterly External Debt Statistics (QEDS), World Bank and World Economic Outlook (WEO), IMF 104Annexure XXIII: External Debt Position of Top 20 Debtor Countries in the World (USD Million) 2024 Q4 (End-December 2024) 2025 Q3 (End-September 2025) 2025 Q4 (End-December 2025) Sl. ED to ED to Country Name Short Short No. Short Run Long Run Total GDP Long Run Total Long Run Total GDP Run Run ratio Ratio

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 1 United States 87,14,354 1,89,15,222 2,76,29,576 94.3 97,26,468 1,93,90,860 2,91,17,328 98,90,129 1,95,37,281 2,94,27,410 95.6 2 United Kingdom 68,40,653 29,94,444 98,35,097 266.1 78,71,597 31,21,807 1,09,93,404 78,36,677 31,80,042 1,10,16,719 275.2 3 France 33,29,636 42,59,006 75,88,642 240.1 41,35,895 50,26,703 91,62,598 41,10,461 50,27,561 91,38,022 271.2 4 Germany 23,61,323 42,72,052 66,33,375 141.6 29,11,887 50,91,878 80,03,765 28,77,261 50,84,307 79,61,569 157.7 5 Netherlands 9,61,537 31,12,959 40,74,496 335.5 12,15,298 36,56,913 48,72,211 11,36,098 37,32,247 48,68,345 365.4 6 Japan 31,96,146 11,76,244 43,72,391 104.4 33,44,523 13,57,010 47,01,533 33,20,148 13,42,080 46,62,228 105.1 7 Luxembourg 10,13,008 27,01,375 37,14,383 3983.2 11,81,243 29,62,306 41,43,549 11,00,712 29,86,203 40,86,914 4042.4 8 Ireland 12,72,559 19,08,363 31,80,923 522.3 15,73,521 21,74,125 37,47,647 16,47,563 21,60,324 38,07,886 530.2 9 Canada 11,83,533 19,53,672 31,37,205 138.2 12,67,969 21,05,367 33,73,336 13,29,451 21,56,927 34,86,378 150.3 10 Italy 9,18,634 18,33,920 27,52,554 115.5 10,48,673 22,63,357 33,12,030 10,11,617 23,06,761 33,18,379 130.1 11 Spain 10,09,519 16,87,996 26,97,515 156.4 11,29,916 20,34,155 31,64,071 12,02,372 20,36,315 32,38,688 170.1 12 Switzerland 11,16,648 11,06,228 22,22,876 229.1 12,43,534 12,23,605 24,67,139 12,59,166 12,39,805 24,98,971 239.5 13 Singapore 13,95,081 8,49,502 22,44,583 391.8 14,60,402 9,35,315 23,95,717 15,25,406 9,47,409 24,72,814 409.5 14 China 12,54,538 10,89,811 23,44,350 12.4 13,08,505 10,61,307 23,69,812 12,59,838 10,68,991 23,28,829 11.9 15 Hong Kong 11,33,273 7,56,409 18,89,682 462.7 12,08,394 8,15,004 20,23,398 12,37,709 8,24,764 20,62,473 482.7 16 Australia 3,67,081 12,93,162 16,60,243 92.3 3,72,738 14,23,054 17,95,792 3,89,464 14,52,077 18,41,541 100.1 17 Belgium 6,53,110 9,10,374 15,63,483 232.9 8,15,079 10,33,136 18,48,215 7,96,181 10,35,213 18,31,394 252.6 18 Sweden 3,19,723 6,57,269 9,76,993 161.5 4,00,541 7,72,169 11,72,710 3,65,892 7,57,616 11,23,508 167.9 19 Austria 2,32,858 5,60,237 7,93,095 148.3 2,79,322 6,50,788 9,30,110 2,65,606 6,39,811 9,05,416 156.1 20 Norway 2,63,093 4,72,220 7,35,313 146.8 2,94,285 5,16,208 8,10,492 2,97,617 5,57,975 8,55,592 161.2 The order of the countries’ is the ranking of total external debt stock appearing in column no. 12.

Source: Quarterly External Debt Statistics (QEDS), World Bank and World Economic Outlook (WEO), IMF 105Annexure XXIV: External Commercial Borrowingsa (USD Million) Gross Total Debt Debt Year Approvalsb Amortisationc Interestc Disbursementc Servicec Outstandingc

(1) (2) (3) (4) (5) (6) (7) 1990-91 1,903 1,700 1,191 1,042 2,233 13,909 1991-92 2,127 2,798 1,146 994 2,140 15,557 1992-93 2,200 1,001 1,357 917 2,274 15,818 1993-94 2,585 1,859 1,703 896 2,599 16,650 1994-95 4,469 2,670 2,513 1,091 3,604 18,037 1995-96 6,286 4,538 3,311 1,162 4,473 19,024 1996-97 8,581 7,018 4,032 1,177 5,209 20,261 1997-98 8,712 7,400 3,411 1,406 4,817 23,946 1998-99 5,200 6,927 3,153 1,575 4,728 28,182 1999-00 3,398 2,289 3,460 1,635 5,095 27,530 2000-01 2,837 9,295 5,043 1,683 6,726 30,922 2001-02 2,653 2,933 4,013 1,534 5,547 29,579 2002-03 4,235 3,033 5,001 1,180 6,181 28,074 2003-04 6,671 5,149 8,015 2,031 10,046 25,809 2004-05 11,490 9,094 3,571 959 4,530 31,595 2005-06 17,175 14,606 11,518 2,996 14,514 32,371 2006-07 24,492 20,727 3,785 1,709 5,494 48,459 2007-08 28,842 29,112 6,063 2,630 8,693 71,051 2008-09 16,517 14,024 6,426 2,702 9,128 77,862 2009-10 21,703 15,951 11,501 2,397 13,898 82,518 2010-11 25,012 23,008 10,440 2,584 13,024 1,08,328 2011-12 35,240 31,791 16,478 4,326 20,804 1,26,288 2012-13 30,992 28,563 16,355 4,990 21,345 1,38,735 2013-14 30,563 29,901 17,778 4,739 22,517 1,49,146 2014-15 27,415 29,454 26,000 4,886 30,886 1,46,097 2015-16 23,519 23,611 26,725 4,976 31,701 1,46,104 2016-17 20,052 21,228 25,642 4,894 30,536 1,36,239 2017-18 27,199 27,090 24,834 5,288 30,122 1,26,443 2018-19 38,589 32,136 18,913 6,289 25,202 1,37,035 2019-20 47,226 47,678 17,971 6,839 24,810 1,64,805 2020-21 32,108 33,773 29,426 6,689 36,115 1,68,555 2021-22 37,162 34,369 21,389 6,399 27,788 1,77,848 2022-23 25,499 24,304 23,807 8,340 32,147 1,75,087 106Gross Total Debt Debt Year Approvalsb Amortisationc Interestc Disbursementc Servicec Outstandingc 2023-24 R 46,444 39,177 29,929 10,494 40,423 1,80,789 2024-25 PR 58,625 54,969 29,514 11,009 40,523 2,04,707 2025-26 P 43,188 42,557 24,349 11,394 35,743 2,19,898 R: Revised; PR: Partially Revised; P: Provisional.

a: The definition of commercial borrowing includes loans from commercial banks, other commercial financial institutions, money raised through issue of securitised instruments like Bonds (including India Development Bonds (IDBs) and Resurgent India Bonds (RIBs), Floating Rate Notes (FRN), etc. It also includes borrowings through Buyers' credit & Supplier credit mechanism, of concerned countries, International Finance Corporation, Washington [IFC(W)], Nordic Investment Bank and private sector borrowings from Asian Development Bank (ADB).

b: Based on date of agreement of the loan which may differ from the date of granting the loan registration number by the RBI.

Ceiling on ECB approvals is fixed on the basis of the latter, which may either be after or before the date of agreement of the loan. Hence, there may be some difference between the amount shown under approvals in the table and the amount of ceiling fixed for a particular year.

c: May show small variation as compared to other figures given elsewhere in this Report due to differences in classification.

Note: Disbursements during 1998-99 and 2000-01 include RIBs (USD 4.2 billion) and IMDs (USD 5.5 billion), respectively.

Debt service payments during 2003-04 and 2005-06 include redemption of RIBs {USD 5.2 billion (principal USD 4.2 billion and interest USD 1 billion)} and IMDs {USD 7.1 billion (principal USD 5.5 billion and interest USD 1.6 billion)}, respectively.

107