15/04/2024
Debt to GDP ratio of countries like the US is about 132%, that of Canada is 116%, China is 67%, Germany is 70%, France is 115%. For India it is 61%. India looks better than all the advanced countries on this ratio and yet our ratings are lower than these so-called advanced countries. As far as the fiscal deficit is concerned, India is a little lower and had a fiscal deficit of around 12.2% last year as compared to about 6-10% for advanced countries. Fiscal deficit can be easily plugged in with better taxation and disinvestment revenues, removal of subsidies. But debt cannot be brought down so easily. If India can get its act together and get its fiscal deficit down, India could really see its ratings skyrocket.