Story by
ew Delhi: Often hailed as an emerging global power, India’s rise is underpinned by a complex web of loans, investments and international financial cooperation. The question is whether India is a heavy borrower or a responsible debt manager. Which countries and institutions lend the most to India, and how has the country simultaneously extended assistance to dozens of other nations?
India’s Growing Foreign Debt
Influenced by domestic needs and global economic conditions, India’s foreign debt has grown over time. By the end of March 2020, India’s total external debt reached around $558.5 billion. This includes commercial borrowing, Non-Resident Indian (NRI) deposits and loans from multilateral institutions.
Raising capital from global markets has been a core part of India’s economic strategy, helping finance infrastructure projects, industrial growth and developmental initiatives.
Who Lends The Most To India?
India’s foreign debt is not concentrated with a single country. A large portion comes from international markets, foreign banks and institutional investors.
Multilateral institutions such as the World Bank and the Asian Development Bank have also been key lenders. During crises like the COVID-19 pandemic, loans from these institutions were crucial in supporting MSMEs, strengthening healthcare systems and bolstering education. Such borrowing has been an important tool for crisis management