India’s external debt hits $762.8 billion, debt-to-GDP ratio rises to 20.8%

INDIA, 22 JULY 2026 —

India's external debt has reached $762.8 billion as of end-March 2026, with the debt-to-GDP ratio increasing to 20.8%, according to data from the Reserve Bank of India (RBI). This development may have implications for emerging markets, including Malaysia, as investors monitor debt levels and economic stability in the region.

The rise in India's external debt may impact Malaysia's economy, particularly in terms of trade and investment. The Malaysian economy has been closely tied to regional trade, and any significant changes in India's economic landscape may have a ripple effect on the local market.

According to the RBI data, India's external debt stood at $762.8 billion at the end of March 2026, with the debt-to-GDP ratio climbing to 20.8%. The data was released on June 29, 2026. The RBI report highlights the need for continued monitoring of India's debt levels and their potential impact on the regional economy.

As investors and policymakers continue to monitor the situation, Malaysia's economy will likely be affected by any significant changes in India's economic landscape. The Malaysian government and businesses may need to adjust their strategies to respond to the shifting economic dynamics in the region.

Further updates and analysis will be necessary to determine the full extent of the impact on Malaysia's market.

Related: Reserve Bank of India (RBI) · India