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:
First Published: May 21, 2025, 12:35
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