India's non-sovereign debt may rise to 150 pc of GDP by 2047: Crisil - The Economic Times
India's non-sovereign debt may rise to 150 pc of GDP by 2047: Crisil - The Economic Times
Source: The Economic Times
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DW NOTE
Crisil projects India's private debt will reach 150% of GDP by 2047 — the year India marks a century of independence. That's household, corporate, and financial sector borrowing combined, rising from roughly 110% today. The gap between public and private leverage in India now mirrors the pattern that preceded Japan's three lost decades: the state borrows modestly while households and firms shoulder exponential debt growth to fund economic expansion. India's fiscal deficit has averaged 6-7% in recent years, but the Centre keeps sovereign debt around 60% of GDP by pushing credit creation into the banking system. When that private debt mountain meets the next global liquidity shock, the question isn't whether India will face a balance sheet recession — it's whether Delhi will have enough fiscal space left to respond.