This paper looks into the changes in the structure of the outstanding liabilities of the Central government in India over the period 1996-97 to 2025-26. Based on RBI data on the outstanding liabilities, the study has found that during this period total internal liabilities has been higher than the external liabilities, showing a secular decline in the reliance on external aid and loans for development in recent times. The structure of internal liabilities has undergone significant changes during this period. There has been an increase in the share of market loan in the internal liabilities of the central government which shows the efficacy and strength of the Indian financial market.