New Delhi, Dec. 19 -- India loses billions of dollars each year due to structural imbalances in the international financial system, according to the World Inequality Report 2026 released by the World Inequality Lab.

The report highlights that developing countries like India pay higher interest on external borrowings while earning lower returns on overseas investments.

India's External Debt Position

For India, external debt stood at USD 747.2 billion at the end of June 2025, an increase of USD 67.5 billion over one year. Annual interest payments on this debt are estimated at USD 22.5 billion.

External debt now accounts for 19.1 percent of GDP, up from 18.5 percent the previous year. The report notes that these outflows represent resour...