New Delhi, February 6, 2025 – India’s debt-to-GDP ratio is expected to decline to 50-51% in the coming years if the country maintains a nominal GDP growth rate of 10.5%, according to a report by SBI Funds Management. The report notes that India’s debt level, which peaked at around 81% of GDP during the COVID-19 pandemic, has improved due to strong economic growth and fiscal consolidation efforts.
The report highlights that sustaining this growth will require policy support, infrastructure investment, and inflation control. While the government’s focus on manufacturing, exports, and domestic demand strengthens economic prospects, global uncertainties and interest rate fluctuations may pose challenges.
