India's debt to hit 87.6% of GDP in FY21; FRBM target only by FY30: Report

India's debt to GDP ratio has increased from Rs 58.8 trillion (67.4 per cent of GDP) in the financial year 2011-12 (FY12) to Rs 146.9 trillion (72.2 per cent)

Covid-19 pandemic and the subsequent nationwide lockdown starting March 2020-end cast its shadow on the economy with most experts projecting a contraction. Increased borrowing by the government given these developments is likely to push up India’s debt further to around Rs 170 trillion, or 87.6 per cent of the gross domestic product (GDP) in the current financial year 2020-21 (FY21), suggests the July 20 ‘Ecowrap’ report by State Bank of India (SBI), authored by Dr. Soumya Kanti Ghosh, their group chief economic adviser.

“Together with declining GDP growth, debt to GDP ratio has also been adversely affected in all countries.