India’s external debt rose by $67.5 billion from end-March 2024 to $736.3 billion at end-March 2025, with the external debt-to-GDP ratio increasing marginally to 19.1% from 18.5% a year ago.
In its July issue of the bulletin, the RBI said the global macroeconomic environment remained fluid in June and July so far amid geopolitical tensions and tariff policy uncertainties. “Domestic economic activity held up, with improving kharif agricultural season prospects, continued strong momentum in the services sector, and modest growth in industrial activity. Headline CPI inflation remained below 4 per cent for the fifth consecutive month in June, driven by deflation in food prices.”
It also said system liquidity remained in surplus to facilitate a faster transmission of policy rate cuts to the credit markets. “The external sector remained resilient, backed by ample foreign exchange reserves and a moderate external debt-to-GDP ratio.”
