Government debt in India set to soar post-COVID, sustainability at risk.
The article examines how much debt the Indian government can sustain compared to its GDP. They used two methods to calculate this, finding that the target debt-GDP ratio is around 60%. Over the years, India has mostly had a primary deficit, meaning it spends more than it earns. The study shows that India's government debt is likely to be much higher than sustainable after COVID-19, and it will take a long time to get back to a healthy level. To fix this, policies need to be put in place to make sure the economy grows faster than the interest on the debt.