“Observations on Government Debt to GSDP Ratio by States in India”, My Ind Maker, December 04, 2025

“Weaponisation of trade and tariff instruments, as well as of finance, natural resources, and global mobility; heightened global uncertainties due to newer technologies such as AI (Artificial Intelligence), digital technologies, and others; and an emerging global reset towards a multipolar world are among the key factors making competent fiscal management at the national, state (provincial), and local levels essential for economic and social resilience. Both societal and economic challenges in India must be addressed.

This is also the case with India, where the pursuit of ATMANIRBHARTA requires future-oriented and socially needs-compatible fiscal management. One of the fiscal indicators suggesting potential to pursue such fiscal management in states in India is government debt to GSDP (Gross State Domestic Product). At the Central government level, the debt-to-GDP (Gross Domestic Product) ratio is relevant.

Figure 1 provides data on General government gross debt (not including financial assets) to GDP ratios globally. The figures include debt at all levels of government. The data exclude off-budget debt of state entities and contingent liabilities, which are potential government obligations that may become actual financial costs only if a specific, uncertain event occurs. Moreover, as most government accounting systems are cash-based, not accrual-based, future pension, health care and other liabilities of the government may not be fully taken into account. These observations also apply to debt data for the states (provinces) and local governments, as they are also a part of gross general government debt…….”

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