India's General Government Debt (% of GDP), 1991-2022

India’s debt ratio was high at the start of the 1990s, reaching 75.3% in 1991 amid an economic crisis that led to significant fiscal reforms. By 1995, India had brought down its debt to 69.7% with these reforms and continued efforts to stabilize. However, public debt started increasing again in the 2000s, peaking at 84.4% in 2003 due to high infrastructure spending and social programs.

While India managed to reduce debt moderately in the late 2000s, reaching 66.4% in 2010, levels gradually increased again, reaching 88.5% in 2020 due to the economic fallout from COVID-19. By 2022, India’s debt ratio remained elevated at 83.1% as economic recovery continued amidst fiscal challenges.