Have you ever wondered why some states in India seem to be doing better than others? One of the factors is their debt-to-GDP ratio. In this article, we explore the reasons behind their varying degrees from state to state
The debt-to-GDP ratio of India is a fundamental economic metric in assessing India’s ability to manage its debt burden and overall economic well-being. However, the debt-to-GDP ratio of India as a whole doesn't provide a complete picture of the economic well-being of individual states or regions within the country. This is where the debt-to-GDP ratio of Indian states reflects each state's specific financial situation and policies.
The debt-to-GDP ratio of Indian states influences credit ratings, budgetary decisions and fiscal strategies. By monitoring and managing this ratio effectively, states can maintain long-term financial stability, ensure responsible fiscal management, and make informed economic policy choices.
The debt-to-GDP ratio of Indian states is calculated by dividing the total outstanding debt of a specific state by its Gross Domestic Product (GDP) and multiplying by 100 to express it as a percentage. Here's the formula:
Debt-to-GDP Ratio for States = (Total State Debt / State GDP) * 100
State | Debt-to-GDP (%) in FY 2025-26 (Budget Estimate) | Fiscal Deficit (%) in FY 2025-26 (Budget Estimate) |
---|---|---|
Jammu & Kashmir | 51 | 5.6 |
Nagaland | 47.8 | 3 |
Arunachal Pradesh | 45.9 | 8.9 |
Punjab | 44.5 | 3.8 |
Himachal Pradesh | 40.5 | 4 |
Mizoram | 38.8 | 4.6 |
Sikkim | 38.2 | 5.8 |
West Bengal | 38 | 3.6 |
Meghalaya | 37.6 | 3 |
Bihar | 37 | 3 |
Rajasthan | 36.5 | 4.3 |
Tripura | 35 | 4.9 |
Andhra Pradesh | 35 | 4.4 |
Kerala | 33.8 | 3.2 |
Madhya Pradesh | 31.3 | 4.7 |
Chattisgarh | 29.6 | 3.8 |
Uttar Pradesh | 29.4 | 3 |
Telangana | 28.1 | 3 |
Jharkhand | 27 | 2 |
Haryana | 26.2 | 2.7 |
Tamil Nadu | 26.1 | 3 |
Assam | 25.7 | 3.7 |
Uttarakhand | 24.9 | 2.9 |
Karnataka | 24.9 | 2.9 |
Maharashtra | 18.4 | 2.8 |
Gujarat | 15.3 | 2 |
Odisha | 12.7 | 3.2 |
Manipur | NA | NA |
Goa | NA | NA |
Delhi | NA | 1.09 |
GDP and Debt to GDP data are sourced from PRS Legislative Research and compiled by Forbes India based on 2025-26 budget estimates