Current Affairs - Economy - Discussion

India’s external debt rose by 10% year-on-year to $736.3 billion as of March 2025, according to the Reserve Bank of India. This reflects an increase of $67.5 billion from the previous year's figure of $668.8 billion. The growth was influenced by factors such as global financial conditions, increased international borrowing by corporations, and currency valuation changes, particularly the appreciation of the US dollar. The rise in external debt also led to a slight increase in the debt-to-GDP ratio from 18.5% to 19.1%, highlighting concerns over macroeconomic vulnerability and the growing role of external financing in India’s economic framework.