Archive · 25 Sep 2025
India's Debt Management Compared to Advanced Economies
Many countries, especially rich ones, are dealing with a lot of debt, meaning they borrowed a lot of money.
This can cause problems, especially when interest rates go up.
They might have to cut spending or raise taxes.
India's debt increased due to the COVID-19 crisis, but it has decreased since.
India's government is trying to lower its debt and has better demographics, which may help it avoid the debt problems seen in other countries.
Advanced economies struggle with rising debt and interest payments.
Debt-financed spending is an easy way to tackle growth slowdowns, but costly.
Bank for International Settlements urges governments to curb public debt.
India's debt-to-GDP fell from 61.4% in 2020-21 to 57.9% in 2022-23.
India is better positioned to manage debt than advanced countries.
- Who
- India and Advanced Economies
- What
- Debt levels and fiscal health
- When
- 2007-2025
- Where
- Global, with focus on India, US, UK, Germany, France
- Why
- To assess fiscal responsibility and debt management
- India's Debt Goal (2030-31)
- 50% of GDP
- Centre's Debt (2020-21)
- 61.4% of GDP
- Centre's Debt (2022-23)
- 57.9% of GDP
Sources
Debt trap: Editorial on the detoriating fiscal health of India’s states - Telegraph India
India's public spending: Is all that capital expenditure hiding a bigger problem?
Telangana Debt Rises 500% Under BRS Govt, Says CAG Data
Debt-To-GDP Ratio To Drop To 77 Pc By FY31, But Debt Affordability Poor Than Peers
