The IMF, in its so-called Article IV assessment, said India’s overall public debt, including federal and state debt, could reach 100% of GDP under adverse circumstances by FY28.
The Indian government on Friday said the International Monetary Fund’s (IMF) warning that the country’s debt-to-GDP ratio could reach 100% was a worst-case scenario and not a “fait accompli”.
The IMF, in its so-called Article IV assessment, said India’s overall public debt, including federal and state debt, could reach 100% of GDP under adverse circumstances by FY28.
India’s finance ministry said this was “a worst-case scenario and not a fait accompli”.
According to the ministry, the IMF report also said that India’s debt-to-GDP ratio, which was 81 per cent in 2022/23, could fall below 70 per cent during the same period under favorable circumstances. “Therefore, any interpretation that the report implies that general government debt will exceed 100% of GDP in the medium term is erroneous,” the ministry added.
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