Archive · 8 Aug 2025
Indian States Increase Borrowing to Boost Economic Growth
In July, states in India borrowed a lot more money than usual, about ₹96,769 crore, to fund projects.
This is different because states usually borrow more later in the year.
They are borrowing more now to start projects early, especially with the government investing in infrastructure.
From April to July, they borrowed a total of ₹2.97 trillion.
Experts believe this is to boost the economy.
Maharashtra, Andhra Pradesh, Madhya Pradesh, Telangana, and Tamil Nadu were among the states that borrowed the most money.
Indian state governments significantly increased borrowing in July, reaching ₹96,769 crore through state development loans (SDLs).
This borrowing surge is a departure from the usual pattern, with states front-loading SDL issuances.
Between April and July FY26, states raised ₹2.97 trillion through market borrowings, an increase from the previous year.
The Reserve Bank of India (RBI) data indicates states and Union territories are projected to raise ₹2.87 trillion through SDLs in the July–September quarter.
Maharashtra led the latest SDL auction, followed by Andhra Pradesh, Madhya Pradesh, Telangana, and Tamil Nadu.
- Who
- State governments
- What
- State governments increased borrowing through SDLs.
- When
- Borrowing increased in July and the July-September quarter.
- Where
- India
- Why
- To fast-track capital spending and boost economic growth.
- July SDL Allotment
- ₹96,769 crore
- July SDL Allotment (previous year)
- ₹68,383 crore
- Borrowing (April-July FY26)
- ₹2.97 trillion
- Borrowing (April-July Previous Year)
- ₹2.14 trillion
- Projected SDLs (July-Sept)
- ₹2.87 trillion
- Maharashtra SDL Auction
- ₹6,000 crore
- Andhra Pradesh, Madhya Pradesh, Telangana SDL Auction
- ₹5,000 crore each
- Tamil Nadu SDL Auction
- ₹4,000 crore