You are here: Home » News-CM » Economy » News
Business Standard

India's Debt To GDP Ratio Approaches 90% Following Covid-19 Pandemic

Capital Market 

The International Monetary Fund (IMF), stated in a latest press briefing that the Covid-19 pandemic has hurt India and other emerging markets very hard. The priority is to focus on getting the virus under control. There have been very substantial increases in debt ratios globally and similar trend has been seen in the case of India.

The debt ratio at the end of 2019, prior to the pandemic, was 74% of GDP, and at the end of 2020, it is almost 90% of GDP. IMF noted that while this is a very large increase, it is similar to what other emerging markets and advanced economies have experienced. Going forward, the IMF, in its baseline forecast expects that the debt ratio will gradually come down as the economy recovers. The baseline forecast under the assumption of healthy economic growth in the medium term, sees debt to GDP ratio returning to about 80% over time.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, April 09 2021. 12:02 IST