**Executive Summary**
This report, published in March 2025, details India's external debt for the quarter ending December 2024. It provides highlights of key developments, including the debt stock, GDP ratio, valuation effects, debt maturity structures, and currency composition, and general government/non-government sector debt. It also provides outstanding debt by instruments and key external debt indicators.
**Key Points / Main Content**
* **Overall External Debt:**
* India's external debt at end-December 2024 was US$ 717.9 billion, a US$ 5.2 billion increase from end-September 2024.
* The external debt to GDP ratio rose to 19.1% at end-December 2024, compared to 19.0% at end-September 2024.
* **Valuation Effect:**
* Valuation effect due to the appreciation of the US dollar versus the Indian rupee and other major currencies was US$ 12.7 billion.
* Excluding this effect, the increase in external debt would have been US$ 17.9 billion.
* **Debt Maturity:**
* Long-term debt (maturity above one year) was US$ 578.3 billion, a marginal increase of US$ 0.2 billion from end-September 2024.
* The share of short-term debt (maturity up to one year) in total external debt increased to 19.4%.
* Short-term debt (residual maturity basis) constituted 42.4% of total external debt.
* **Currency Composition:**
* US dollar-denominated debt remained the largest component at 54.8%, followed by Indian Rupee (30.6%).
* **Sector-wise Debt:**
* General Government external debt declined.
* Non-Government sector external debt increased.
* Non-financial corporations account for 36.5% of external debt.
* **Debt Components:**
* Loans are the largest component of external debt (33.6%), followed by currency and deposits (23.1%).
* **Debt Service:**
* Debt service stood at 6.6% of current receipts at end-December 2024.
**Impact Analysis**
**General Government**
* **Impact:** The document provides a detailed overview of the government's external debt position, which helps in assessing the overall fiscal health and sustainability of government finances.
* **Action Required:** The government needs to monitor and manage its external debt to ensure it remains within sustainable levels.
**Non-Government Sector (Including Corporations)**
* **Impact:** The report outlines the external debt burden of non-government entities, which is critical for assessing financial stability and potential risks to the economy.
* **Action Required:** Corporations should monitor their external debt levels and ensure they have the capacity to service their debts.
**Ministry of Finance/Economic Planners**
* **Impact:** Provides crucial data for policy formulation, risk assessment, and strategic planning related to external debt management and overall economic stability.
* **Action Required:** Use the report's insights to refine external debt management strategies, identify potential vulnerabilities, and ensure sustainable economic growth.
Key Entities Referenced
Ministry of Finance: Indian government ministry responsible for economic policy, financial regulation, and taxation.
India's External Debt: The total outstanding external debt of India, a key indicator of the country's economic health and stability.
IMF's 2013 External Debt Statistics (EDS) Guide: International standard for compiling external debt statistics.
India’s
Quarterly External Debt Report
for Quarter
Ending December 2024
Government of India
Ministry of Finance
Department of Economic Affairs
External Debt Management Unit
www.dea.gov.in
March 2025India’s External Debt as at end of December 2024
The stock of external debt at end-December 2024 along with the revised data for earlier
quarters is set out in Statement I (IMF format1) and Statement II (old format). The major
developments relating to India’s external debt as at end-December 2024 are presented below:
Highlights
1. At end-December 2024, India’s external debt was placed at US$ 717.9 billion,
recording an increase of US$ 5.2 billion over its level at end-September 2024 (Table
1).
2. The external debt to GDP ratio stood at 19.1 per cent as at end-December 2024, as
against 19.0 per cent as at end-September 2024 (Table 1).
3. Valuation effect due to the appreciation of the US dollar vis-à-vis the Indian rupee and
other major currencies, such as yen, the euro and SDR2 amounted to US$ 12.7 billion
during the quarter ended December 2024. Excluding the valuation effect, the increase
in external debt would have been US$ 17.9 billion instead of US$ 5.2 billion at end-
December 2024 over end- September 2024.
4. At end-December 2024, long-term debt (with an original maturity of above one year)
was placed at US$ 578.3 billion, recording a marginal increase of US$ 0.2 billion over
its level at end-September 2024 (Table 1).
5. The share of short-term debt (with original maturity of up to one year) in total
external debt increased to 19.4 per cent at end-December 2024 from 18.9 per cent at
end-September 2024. Similarly, the ratio of short-term debt (original maturity) to
foreign exchange reserves increased to 22.0 per cent at end-December 2024 from 19.1
per cent at end-September 2024 (Table 5).
6. Short-term debt on residual maturity basis (i.e., debt obligations that include long-
term debt by original maturity falling due over the next twelve months and short-term
debt by original maturity) constituted 42.4 per cent of total external debt at end-
December 2024 (42.4 per cent at end-September 2024) and stood at 47.8 per cent of
foreign exchange reserves (42.8 per cent at end-September 2024) (Table 2).
7. US dollar denominated debt remained the largest component of India’s external debt,
with a share of 54.8 per cent at end-December 2024, followed by Indian Rupee (30.6
per cent), Japanese Yen (6.1 per cent), SDR (4.7 per cent) and Euro (3.0 per cent).
8. The outstanding external debt of General Government declined while that of non-
Government sector increased at end-December 2024 over its level at end-September
2024 (Table 3).
1 The concepts set out in the IMF’s 2013 External Debt Statistics (EDS) Guide 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.
2 SDR: Special Drawing Rights.9. The share of outstanding debt of non-financial corporations in total external debt was
36.5 per cent, followed by deposit-taking corporations (except the central bank) (27.8
per cent), general government (22.1 per cent) and other financial corporations (8.7 per
cent) (Table 3).
10. Loans were the largest component of external debt, with a share of 33.6 per cent,
followed by currency and deposits (23.1 per cent), trade credit and advances (18.8 per
cent) and debt securities (16.8 per cent) (Table 4).
11. Debt service (principal repayments plus interest payments) stood at 6.6 per cent of
current receipts at end-December 2024 as compared with 6.7 per cent at end-
September 2024 (Table 5).
***Table 1: External Debt - Outstanding and Variation
(US$ billion, unless indicated otherwise)
Absolute Variation Percentage variation
Dec 2023 Sep 2024 Dec 2024
PR PR P
Sector/Instrument Dec 2024 over Dec 2024 over Dec 2024 over Dec 2024 over
Dec 2023 Sep 2024 Dec 2023 Sep 2024
(1) (2) (3) (4) (5) (6) (7) (8)
I. General Government 142.5 162.0 158.9 16.4 -3.0 11.5 -1.9
II. Central Bank 0.2 0.3 0.3 0.1 0.0 66.3 10.9
III. Deposit-Taking Corporations, except the Central Bank 176.4 198.3 199.9 23.5 1.6 13.3 0.8
IV. Other Sectors 298.2 319.6 324.7 26.5 5.1 8.9 1.6
IV.1. Other financial corporations 46.6 58.3 62.3 15.7 4.0 33.7 6.8
IV.2. Non-financial corporations 251.5 261.3 262.4 10.9 1.1 4.3 0.4
IV.3. Households and non-profit institutions serving
0.0 0.0 0.0 0.0 0.0 -8.0 -5.1
households (NPISHs)
V. Direct Investment: Intercompany Lending 31.4 32.5 34.0 2.7 1.5 8.5 4.7
69.2 5.2 10.7 0.7
Gross External Debt (I to V) 648.7 712.7 717.9
(As a percentage of GDP) (18.4) (19.0) (19.1)
Memo Items:
A. Long-term Debt @ 521.6 578.1 578.3 56.8 0.2 10.9 0.0
B. Short-term Debt # 127.1 134.5 139.6 12.5 5.0 9.8 3.7
PR: Partially Revised; P: Provisional.
@: Debt with original maturity of above one year.
#: Debt with original maturity of up to one year.
Note: Figures are rounded to one decimal place. Figures may not add up to total due to rounding off.Table 2: Residual Maturity of Outstanding External Debt as at end-December 2024
(US$ billion, unless indicated otherwise)
Short-term up 1 to 2 2 to 3 More than Total
Sector
to one year years years 3 years (2 to 5)
(1) (2) (3) (4) (5) (6)
I. General Government 9.5 13.4 11.0 125.1 158.9
I.A. Short-term 0.4 -- -- -- 0.4
I.B. Long-term 9.1 13.4 11.0 125.1 158.6
II. Central Bank 0.3 0.0 0.0 0.0 0.3
II.A. Short-term 0.3 -- -- -- 0.3
II.B. Long-term 0.0 0.0 0.0 0.0 0.0
III. Deposit-Taking Corporations, except the Central Bank 120.7 33.7 7.9 37.7 199.9
III.A. Short-term 3.7 -- -- -- 3.7
III.B. Long-term 117.0 33.7 7.9 37.7 196.2
IV. Other Sectors 166.8 24.2 36.7 96.9 324.7
IV.A. Short-term 135.2 -- -- -- 135.2
IV.B. Long-term 31.6 24.2 36.7 96.9 189.5
IV.1. Other financial corporations 5.4 8.1 18.2 30.6 62.3
IV.1.A. Short-term 1.1 -- -- -- 1.1
IV.1.B. Long-term 4.3 8.1 18.2 30.6 61.2
IV.2. Non-financial corporations 161.4 16.2 18.5 66.3 262.4
IV.2.A. Short-term 134.2 -- -- -- 134.2
IV.2.B. Long-term 27.2 16.2 18.5 66.3 128.2
IV.3. Households and non-profit institutions serving households (NPISHs) 0.0 0.0 0.0 0.0 0.0
IV.3.A. Short-term 0.0 -- -- -- 0.0
IV.3.B. Long-term 0.0 0.0 0.0 0.0 0.0
V. Direct Investment: Intercompany Lending 6.8 4.3 5.4 17.6 34.0
A. Total Short-term Debt 139.6 -- -- -- 139.6
B. Total Long-term Debt 164.5 75.5 61.0 277.3 578.3
C. Total External Debt (A+B) 304.0 75.5 61.0 277.3 717.9
Memo Items:
Short-term Debt (residual maturity) as per cent of Total External Debt 42.4
Short-term Debt (residual maturity) as per cent of Foreign Exchange Reserves 47.8
Note: Figures are rounded to one decimal place. Figures may not add up to total due to rounding off.Table 3: Government and Non-Government External Debt
(US$ billion, unless indicated otherwise)
Sector/Instrument Dec 2023 PR Sep 2024 PR Dec 2024 P
(1) (2) (3) (4)
A. General Government (I+II) 142.5 162.0 158.9
(as a percentage of GDP) (4.1) (4.3) (4.2)
I. External Assistance under Govt.
Account 94.8 100.3 98.3
II. Other Govt. External Debt@ 47.7 61.7 60.6
B. Non-Government Debt 506.1 550.7 559.0
(as a percentage of GDP) (14.4) (14.7) (14.9)
B.I. Central Bank 0.2 0.3 0.3
B.II. Deposit-taking Corporations,
except the Central Bank 176.4 198.3 199.9
B.III. Other financial corporations 46.6 58.3 62.3
B.IV. Non-financial corporations 251.5 261.3 262.4
B.V. Households and non-profit
institutions serving households 0.0 0.0 0.0
(NPISHs)
B.VI. Direct Investment:
31.4 32.5 34.0
Intercompany Lending
Gross External Debt (A+B) 648.7 712.7 717.9
PR: Partially Revised; P: Provisional.
@: Other government external debt includes defence debt, investment in Treasury Bills/government
securities by foreign portfolio investors, foreign central banks and international institutions, and SDR
allocations by the IMF.
Note: Figures are rounded to one decimal place. Figures may not add up to total due to rounding off.
Table 4: Outstanding External Debt by Instruments
(US$ billion)
Instruments Dec 2023 PR Sep 2024 PR Dec 2024 P
(1) (2) (3) (4)
SDR 22.2 22.4 21.6
Currency and deposits 149.3 164.1 165.7
Debt securities 107.5 122.9 120.5
Loans 215.0 239.8 241.0
Trade credits and advances 123.3 130.9 135.1
Other debt liabilities 0.0 0.0 0.0
Direct investment: Intercompany lending 31.4 32.5 34.0
Gross External Debt 648.7 712.7 717.9
PR: Partially Revised; P: Provisional.
Note: Figures are rounded to one decimal place. Figures may not add up to total due to rounding off.Table 5: India’s Key External Debt Indicators
(Per cent, unless indicated otherwise)
Ratio of
Ratio of
Ratio of Short-
Short-
External Ratio of Foreign Ratio of Term
Debt Term
Debt External Exchange Concessional Debt
End-March Service Debt to
(US$ Debt to Reserves Debt to (original
Ratio Foreign
billion) GDP to Total Total Debt maturity)
Exchange
Debt to Total
Reserves
Debt
(1) (2) (3) (4) (5) (6) (7) (8)
1991 83.8 28.3 35.3 7.0 45.9 146.5 10.2
1996 93.7 26.6 26.2 23.1 44.7 23.2 5.4
2001 101.3 22.1 16.6 41.7 35.4 8.6 3.6
2006 139.1 17.1 10.1# 109.0 28.4 12.9 14.0
2007 172.4 17.7 4.7 115.6 23.0 14.1 16.3
2008 224.4 18.3 4.8 138.0 19.7 14.8 20.4
2009 224.5 20.7 4.4 112.2 18.7 17.2 19.3
2010 260.9 18.5 5.8 106.9 16.8 18.8 20.1
2011 317.9 18.6 4.4 95.9 14.9 21.3 20.4
2012 360.8 21.1 6.0 81.6 13.3 26.6 21.7
2013 409.4 22.4 5.9 71.3 11.1 33.1 23.6
2014 446.2 23.9 5.9 68.2 10.4 30.1 20.5
2015 474.7 23.8 7.6 72.0 8.8 25.0 18.0
2016 484.8 23.4 8.8 74.3 9.0 23.2 17.2
2017 471.0 19.8 8.3 78.5 9.4 23.8 18.7
2018 529.3 20.1 7.5 80.2 9.1 24.1 19.3
2019 543.1 19.9 6.4 76.0 8.7 26.3 20.0
2020 558.3 20.9 6.5 85.6 8.8 22.4 19.1
2021 573.4 21.1 8.2 100.6 9.0 17.5 17.6
2022 618.8 19.9 5.2 98.1 8.3 20.0 19.7
2023 623.9 19.1 5.3 92.7 8.2 22.2 20.6
2024 PR 668.8 18.5 6.7 96.7 7.4 19.7 19.1
End-June 2024 PR 681.4 18.5 6.6 95.7 7.0 20.2 19.4
End-September
712.7 19.0 6.7 99.0 7.2 19.1 18.9
2024 PR
End-December
717.9 19.1 6.6 88.5 6.8 22.0 19.4
2024 P
PR: Partially Revised; P: Provisional.
#: Works out to 6.3 per cent with the exclusion of India Millennium Deposits (IMDs) repayments of US$ 7.1
billion and pre-payment of external debt of US$ 23.5 million.
Note: Figures are rounded to one decimal place.