India's Debt-to-GDP Ratio and Fiscal Challenges in Key States
| Category | Key Facts & Figures |
|---|---|
| India's Economy | - Fourth-largest economy, surpassing Japan; may overtake Germany in 2.5-3 years. - Fastest-growing large economy, driven by manufacturing, digital services, and infrastructure. |
| Debt-to-GDP Ratio | - 80.4% (India's overall ratio, per IMF). - Central govt. target: 50±1% by March 2031, adopting it as a fiscal anchor from FY 2026-27. |
| Highest Debt States/UTs | - Jammu & Kashmir: 51% (highest in India). - Nagaland: 47.8%; Arunachal Pradesh: 45.9% (fiscal deficit: 8.9%). - Punjab: 44.5%; Himachal Pradesh: 40.5%. - Bihar: 37%; West Bengal: 38%. |
| Northeast Challenges | - Structural issues: Low industrialization, geographic isolation, reliance on central funds, infrastructure gaps. |
| Low-Debt States | - Odisha: 12.7% (lowest debt ratio). - Maharashtra (18.4%), Gujarat (15.3%), Karnataka (24.9%), Tamil Nadu (26.1%) show fiscal discipline. |