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India's External Debt Rose at Fastest Pace in 7 Years in FY25

Business Standard

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September 12, 2025

India's external debt increased 10.1 percent in 2024-25 (FY25) to $736.3 billion, marking the fastest expansion in seven years in dollar terms.

- HIMANSHI BHARDWAJ

In rupee terms, the debt stock climbed to ₹63 trillion, reflecting a 13 percent growth and an addition of ₹7.3 trillion, according to the External Debt Status Report 2024-2025 released by the Union Finance Ministry.

The dollar-terms growth significantly outpaced the 6.4 percent uptick recorded in FY24, when external debt had touched $663.8 billion. The FY25 external debt growth was the highest in seven years in rupee terms as well. In FY18, external debt had increased 12.6 percent in rupee terms and 12.3 percent in dollar terms.

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