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India’s Debt Ratio
April 20 , 2021
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- The International Monetary Fund recently announced that the debt to GDP ratio of India increased from 74% to 90% due to COVID-19 crisis.
- This is to increase to 99% in 2021.
- The international financial organisation has also stated that this is to reduce to 80% after economic recovery.
- The Debt to GDP ratio is the ratio between the debt of the Government measured in the units of its currency to the GDP measured in the same unit.
- When the Debt to GDP ratio is low, it means that the country produces and sells goods and services that are sufficient to pay back debts without incurring further debts.
- The Debt to GDP ratio of India has remained 70% since 1991.
- The Public Debt in India is the total liability of the Union Government that must be paid from the Consolidated Fund of India.
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