Increasing public debt and deficit in India leads to decreased GDP growth.
The article examines how India's public debt and current account deficit affect its economic growth. By analyzing data from 1998 to 2018, the researchers found that increasing external and internal debt, along with a growing current account deficit, have a negative impact on GDP growth. The study used statistical tests to show a long-term relationship between these factors and GDP, but did not find a short-term causality. Overall, the results suggest that higher public debt and deficits in the current account lead to a decrease in India's economic growth.