India's foreign debt stood at approximately $558.5 billion by the end of March 2020, comprising commercial borrowing, NRI deposits, and loans from multilateral institutions like the World Bank and ADB. This debt is crucial for financing infrastructure, industrial growth, and developmental initiatives, as well as for crisis management, particularly supporting MSMEs and healthcare. Funding sources are diverse, including international markets, foreign banks, institutional investors, and a significant role played by NRI deposits.