The Indian government has revealed the country’s total debt in response to a question in the Rajya Sabha. According to the Ministry of Finance, as of March 2025, India’s total debt stands at Rs 185.94 lakh crore, with the majority being domestic debt.
The government said that social welfare schemes will not be cut to manage debt and outlined strategies such as long-term bonds, 40–50 year maturity securities, and green bonds to ensure fiscal sustainability.
Breakdown of India’s Debt
The Ministry of Finance provided detailed figures on India’s total debt:
- Domestic Debt: Rs 157.11 lakh crore (approximately 84% of total debt)
- External Debt: Rs 8.74 lakh crore
- Other Liabilities: Rs 20.09 lakh crore
These figures were presented in Parliament on 2 December 2025 by the Finance Minister.
Is India’s Debt Growing Rapidly?
The government clarified that the debt relative to GDP (Debt/GDP ratio) remains within a safe range. Measures are being taken to manage it effectively, including:
- Reducing the fiscal deficit
- Increasing capital expenditure
- Enhancing tax and non-tax revenue
As a result, the debt level remains under control, and the government ensures it does not affect the economy.
Domestic Debt Keeps India Low-Risk
Since about 84% of India’s debt comes from domestic sources, the government considers it low-risk.
This structure reduces exposure to foreign exchange fluctuations.
Therefore, India can maintain economic stability even during global financial uncertainties.
No Cuts in Social or Capital Expenditure
Some feared that rising interest payments could reduce spending on social schemes.
However, the government has increased these allocations:
Centrally Sponsored Schemes: Increased from Rs 3.84 lakh crore in FY 2020–21 to Rs 5.42 lakh crore in BE 2025–26
Capital Expenditure: Rose from Rs 4.26 lakh crore in FY 2020–21 to Rs 11.21 lakh crore in BE 2025–26
Thus, the government continues its development programs while managing debt efficiently.
What This Means for Indian Citizens
Overall, India’s debt situation remains stable and mostly low-risk. Citizens can expect no cuts in social programs, and long-term fiscal strategies aim to safeguard economic growth and financial stability.
In addition, the government’s proactive approach ensures the country remains prepared for future challenges.
