6 Tweets 3 reads Aug 16, 2023
#MintPlainFacts | India’s public debt remains around 84% of #GDP, a fairly high level for an emerging economy.
But it’s considered to be largely sustainable, thanks to the unique structure and market features of our public debt.
Read here: livemint.com.
#MintPlainFacts | India falls in the middle of the ranks of indebted countries—better than debt-heavy US or Japan, but worse than comparable emerging economies.
Read here: livemint.com.
#MintPlainFacts | In 2020, total liabilities of the Centre and states hit an all-time high of 89.3% of #GDP, mainly due to central spending on covid-19 relief.
It declined in the following years, but remains around 84% of GDP, which is fairly high for an emerging economy.
Read…
#MintPlainFacts | Further, the low share of floating rate debt (5.6% of central government debt at end-March 2021) reduces interest rate risk.
Together, these structural features explain why the share of interest payments in GDP did not increase with the recent rise in interest…
#MintPlainFacts | As of March 2023, the share of external debt in central government debt was about 3.5%.
The fact that India’s debt is mainly in rupees reduces its currency risk. It also explains why the sharp rupee depreciation in 2022 did not result in ballooning interest…
#MintPlainFacts | #India’s #GDP growth has usually been higher than the government borrowing rate. The growth–interest differential remained positive even when rates went up in 2022.
However, keeping a lid on primary deficit is much harder.
Read here: livemint.com.

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