New Delhi, Aug. 22 -- India's interest payments on outstanding debt have nearly tripled over the past decade and are projected to rise to Rs.12.76 trillion in FY26, finance ministry data showed.

The surge reflects elevated borrowing costs as the government has continued to service loans contracted at higher rates, especially during the pandemic years, despite a moderation in bond yields since FY24.

"The repayment profile of government securities has added to the rise, with a share of bonds issued earlier now coming up for servicing, thus keeping the repayment costs high during FY26," an official aware of the matter said, requesting anonymity.

A sizeable stock of medium- and long-term government bonds is set to mature in the coming year...