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A stronger US dollar contributed valuation gains of $5.3 billion. Excluding this effect, the rise in debt over the year would have been $72.9 billion instead of $67.5 billion as of March 2025, the report noted.
3 min read Last Updated : Sep 12 2025 | 12:01 AM IST
India’s external debt increased 10.1 per cent in 2024-25 (FY25) to $736.3 billion, marking the fastest expansion in seven years in dollar terms. In rupee terms, the debt stock climbed to ₹63 trillion, reflecting a 13 per cent 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 per cent 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