India's foreign debt rises to US$717.9 billion; Finance Ministry releases figures

Foreign debt increased by 0.7 percent at the end of September 2024, the foreign debt report for the fourth quarter said. India had a foreign loan of $712.7 billion at the end of last September. The foreign debt-to-GDP ratio was 19.1 percent at the end of last December. In September, it was 19 percent.

The outstanding external debt of the central government has decreased, the Finance Ministry said. The outstanding debt of the non-government sector increased, however, from the end of December 2024 to the end of September 2024. In this outstanding debt report, the share of outstanding debt of non-financial corporations was 36.5 percent. Following this, 27.8 percent of loans are from deposit-accepting corporations (excluding central banks). The share of the central government is 22.1 percent, and other financial corporations' share is 8.7 percent.

According to the same report, the biggest reason for external debt is the loan taken. Apart from 33.6 percent of loans, 23.1 percent is currency and deposits, and trade loans and advances are 18.8 percent. Loan security is 16.8 percent. The report said that debt service (principal repayment plus interest payment) was 6.6 percent by the end of December 2024. It was 6.7 percent of current receipts at the end of September 2024.

The US dollar accounts for the largest share of India's external debt. It was 54.8 percent at the end of December 2024. The Indian rupee (30.6 percent) is second, followed by the Japanese yen at 6.1 percent, special drawing rights (SDR) at 4.7 percent and the euro at three percent.