Question
Which currency accounted for the highest share of
India’s external debt in FY25?Solution
The US dollar continued to dominate India’s external debt composition, making up 54.2% of the total in FY25. It was followed by the Indian Rupee (31.1%), yen (6.2%), SDR (4.6%), and euro (3.2%). This composition underscores India’s dependence on dollar-denominated obligations, though overall sustainability is supported by adequate reserves and a higher share of long-term borrowings.
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