India's debt ratio to GDP is estimated to be 84 per cent by the end of 2022, which is currently 69.62 per cent.
Debt to GDP Ratio: India is also falling into the debt trap. According to the International Monetary Fund, India's debt to GDP ratio is projected to be 84 per cent by the end of 2022, from 69.62 per cent at present. The IMF says that India's debt-to-GDP ratio is much higher than all the emerging economies of the world. Need for a clear policy on fiscal deficit The IMF has said that the ratio of debt to GDP will increase and it also believes that there will be no difficulty in bearing the burden of this debt. Paolo Mauro, deputy director of the IMF's Department of Financial Affairs, said that it is very important for India to have a clear policy on fiscal deficit in the medium term. He said India needs to reassure people and investors that things are under control and with time things will become less worrisome. Debt burden, but India is doing better IMF Asia Pacific Director Krishna Srinivasan said economic growth of all countries is declining but India is doing better. He said the debt ratio could be around 84 per cent of GDP by the end of 2022. This is higher than many emerging economies of the world. He said that while the pace of economic growth of many countries is slowing down, India is not unaffected by it but is doing better than others. Debt burden on these countries Let us tell you that Japan's debt ratio is 237 percent of GDP, Italy's 135 percent, Singapore's 126 percent, America's 107 percent, France's 98.10 percent, Britain's 80.70 percent while India's is 69.62 percent. Pakistan has 84.80 percent. Need to deal with debt burden According to the IMF, 15 percent of GDP has to be borrowed every year. Therefore, it is very important to keep an eye on the pace of borrowing and therefore it is very important to take care of the fiscal deficit, which is currently 10 percent of GDP. But the better situation for India is that it has traditionally had a better pace of economic growth.