India’s external debt hits $711.8 billion in September 2024, up 4.3% since June

India’s external debt reached $711.8 billion by the end of September 2024, marking a 4.3% increase from $682.2 billion in June 2024, according to data from the Finance Ministry. This represents a significant rise from $637.1 billion recorded at the end of September 2023.

India’s Quarterly External Debt Report highlighted that the external debt rose by $29.6 billion between June and September 2024. The external debt-to-GDP ratio also increased to 19.4% in September 2024, compared to 18.8% in June 2024.

The report revealed that US dollar-denominated debt accounted for the largest share of India’s external debt at 53.4% as of September 2024. This was followed by Indian Rupee-denominated debt (31.2%), Japanese Yen (6.6%), Special Drawing Rights (5.0%), and Euro (3.0%).

Both the general government and non-government sectors saw an increase in outstanding external debt during the period. Loans formed the largest share of external debt at 33.7%, followed by currency and deposits (23.1%), trade credit and advances (18.3%), and debt securities (17.2%).

Debt servicing (including principal and interest payments) constituted 6.7% of current receipts as of September 2024, slightly higher than the 6.6% recorded in June 2024.