Increasing Debt on India’s Rapidly Growing Economy
India is one of the fastest growing economies in the world. However, the country’s debt burden is also increasing, as indicated by recent statistics. A report has stated that in the current fiscal year, from July to September, the total debt of the country increased to 2.47 trillion dollars, or 205 lakh crore rupees. The appreciation of the dollar during this period has also impacted the debt figures.
Government Debts and State Contributions
The central government’s debt in the September quarter was 161.1 lakh crore rupees, an increase from 150.4 lakh crore in the March quarter. The state governments contributed 50.18 lakh crore to the total debt. The appreciation of the US dollar has also affected the debt figures, with one dollar equivalent to 83.152506 rupees, up from 82.5441 rupees in March 2023.
Data from Indiabonds.com
The data presented in the report is based on figures from the Reserve Bank of India, CCI, and SEBI, as provided by Vishal Goyanka, co-founder of Indiabonds.com. The report states that the central government accounts for the maximum debt of 161.1 lakh crores or 46.04% of the total debt. The states’ share is 50.18 lakh crores, constituting 24.4% of the total burden.
Warnings from the International Monetary Fund
Previously, the International Monetary Fund (IMF) had issued a warning to India about its debt. The global body stated that the combined debt of the central and state governments could exceed 100% of India’s Gross Domestic Product (GDP) in the medium term, making it difficult to repay the debt over a long period. However, the central government disagreed with the IMF report, asserting that the risk from government debt is low as most of the debt is in Indian currency.
- India’s total debt rises to 2.47 trillion dollars in current fiscal year.
- Central government’s debt in the September quarter was 161.1 lakh crore rupees.
- State governments contribute 50.18 lakh crore to the total debt.
- The IMF warns that India’s debt could exceed 100% of GDP in the medium term.
