India’s debt rising, but mostly in local currency

New Delhi: At nearly 82 per cent of GDP, India’s public debt is very high, but the country doesn’t face debt sustainability issue on account of high growth rate and higher share of local currency debt, NCAER Director General Poonam Gupta said.

Participating in an event organised by NCAER, Gupta said India’s high debt levels are sustainable for now because of higher real or nominal GDP and as most of the debt is held in rupee. The States together hold one-third of the total debt, and in the ‘business as usual’ situation, their debt levels will only increase further over the next five years, Gupta said.