BS EDIT: Rising Global Debt Risks

By Business StandardPublished On Apr 17, 2026

Debt Surge

Global public debt hit 94% of GDP in 2025 and may reach 100% by 2029, raising long-term risks

Conflict Effect

West Asia tensions add uncertainty, worsening fiscal pressures and delaying stability

Cost of Borrowing

Interest payments have climbed to nearly 3% of global GDP, squeezing growth spending

US Deficits

Persistent high US deficits could absorb global savings and tighten capital flows

India’s Exposure

Dependence on foreign capital leaves India vulnerable to external shocks and currency pressure

Way Forward

Faster fiscal consolidation can strengthen stability and reduce reliance on global savings