Why it is in the news
On 30 September 2026, the Reserve Bank of India (RBI) released India's External Debt as at end-June 2026, placing it at US$778.2 billion — US$15.4 billion higher than at end-March 2026 — with the external debt-to-GDP ratio at 20.8%. The same day, its International Investment Position (IIP) data showed net claims of non-residents on India rising by US$16.5 billion during Q1 of 2026-27 to US$220.3 billion.
The exam angle
Issue: India's external debt is moderate and largely non-sovereign, but a thinner reserve cushion, a rising debt share of liabilities and dollar exposure make its composition worth watching.