India's public debt, at 82% of GDP, is high but sustainable due to growth rate and local currency debt; some states face increased debt-to-GDP ratios.
India's public debt, at 82% of GDP, is high but sustainable due to the country's high growth rate and local currency debt. States collectively hold one-third of the total debt, with some like Punjab and Himachal Pradesh facing 50% increases in debt-to-GDP ratio. NCAER Director General Poonam Gupta suggests incentivizing fiscally responsible states and addressing factors like subsidies for electoral gains, which contribute to rising state debt.
July 03, 2024
3 Articles