India's high debt-to-GDP ratio acceptable in times of Covid, say analysts

However, Centre and states must have a clear road map on what the extra borrowing will be spent on, and on how they plan to return to a path of fiscal consolidation

A number of economists, experts and agencies have warned that India’s debt-GDP (gross domestic product) ratio could rise up to as high as 90 per cent in 2020-21, with the Centre and states borrowing more than budgeted as a revenue crunch sets in. This compares to the existing levels of nearly 70 per cent, and the Fiscal Responsibility and Budget Management Act’s medium-term stated target of 60 per cent.

However, some of the same experts say that at a time of deep global slowdown due to the Covid-19 pandemic, and the eight-week nationwide lockdown in India – which is gradually