India's Overall Balance (% of GDP): Net Lending/Borrowing Trends and Forecasts (1990-2029)

India’s fiscal trends reflect consistent challenges in managing large deficits. The 1990s saw deficits averaging -8%, driven by fiscal expansion and developmental needs. A worsening trend in the early 2000s peaked at -11.4% in 2003, largely due to high subsidies and interest payments.

The pandemic brought fiscal pressures to a new high of -12.9% in 2020. While deficits are projected to narrow to -6.6% by 2029, sustained fiscal reforms are essential for long-term macroeconomic stability.