Team Blitz India
NEW DELHI: India shrugged off the International Monetary Fund’s warning that the country’s debt level would exceed 100% of its gross domestic product (GDP) by FY28, saying that the assessment was a worst-case scenario, and not really a fait accompli.
The Finance Ministry in a statement disputed the warnings, asserting that the risks associated with sovereign debt are notably limited, as it is primarily in Indian currency.
“It is also noteworthy, the same report indicates that under favourable circumstances, general government debt to GDP ratio may decline to below 70% during the same period,” the Finance Ministry said in the statement.
“Therefore, any interpretation of the report implying that the general government debt would exceed 100% of GDP in the medium term is misconstrued,” it added.
On 19 December, the IMF raised concerns about the long-term sustainability of India’s sovereign debt, cautioning it is likely to
