GK and monthly revision

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

India's external debt has risen to $762.8 billion by March 2026, marking an increase of $26.3 billion from the previous year. The debt-to-GDP ratio has climbed to 20.8%, influenced by the strengthening of the US dollar. The shift towards a higher proportion of short-term debt raises concerns about its sustainability in relation to foreign exchange reserves, despite a decline in debt servicing costs as a percentage of current receipts. This trend is significant for understanding India's fiscal health and international financial position.