The Indian government’s debt-to-GDP ratio projection by the International Monetary Fund (IMF) exceeding 100% by 2027-28 is “misconstrued”, the Union finance ministry said while adding that the predictions by the UN’s financial body correspond to a worst-case scenario which is not a “fait accompli”, or not something that cannot be revived.
In its so-called annual Article IV review, the IMF predicted that India’s general debt would exceed 100% of its GDP under adverse circumstances by fiscal 2028.
Referring to the same report that predicts the debt-to-GDP ratio for the US, the UK and China, which stand at 160%, 140% and 200%, respectively, under worst-case conditions, the ministry said their situation is far worse compared to 100% for India.
“It is also noteworthy that the same report indicates that under…
