Gasper noted that there is a positive relation between the debt to GDP ratio and the level of GDP per capita. If you compare around the world with the best economies or emerging market economies, the level of debt in India is lower. He added that debt in advanced economies, since the global financial crisis, has increased quite substantially while the private sector has been very gradually leveraging. In the last few years in India private debt has declined from almost 60% to 54.5.
IMF Director of Fiscal Affairs Department further said ‘So, it’s very stable. So, what you do see is that emerging market economies, which is where India is, there’s a very fast buildup in private debt with a slowdown in the last two years, but India is basically steady. So, India is not an emerging market economy where leveraging is progressing fast.’ According to him, in emerging market economies private debt has risen much faster than public debt.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
