Page 86 - ES 2020-21_Volume-1-2 [28-01-21]

Does Growth Lead to Debt Sustainability? Yes, But Not Vice-Versa! 69

Figure 16: Correlations between change in public Savings and
1 year ahead change in Private savings
16a. FY 1951 – FY 2019 16b. FY 1991 – FY 2019

Source:MoSPI

STRuCTuRE OF iNDiA’S DEBT
2.33 After analyzing the key parameters of debt dynamics and their implications, it is imperative
to understand the structure and characteristics of India’s public debt. India’s public debt-to-
GDP has been significantly low compared to high global debt levels (Figure 17). A cross-country
comparison of debt levels points out that for India, the government debt level as a proportion of
GDP is equal to the median in the group of G-20 OECD countries and in the group of BRICS
nations. India’s overall debt levels as a per cent of GDP are the lowest amongst the group of G-20
OECD countries and also among the group of BRICS nations (Figure 18). Moreover, public debt
and overall debt level for India has declined since 2003 and has been stable since 2011.
Figure 17: Debt-to-GDP ratio for india amongst the Rest of the world (2018)

Source: IMF Debt database
Private Debt Data: Japan, Canada, France, US, UK, Italy, Korea, Germany, Russia, Turkey, Mexico report Private
debt for all instruments, and the remaining countries in the sample report Private debt (loans and debt securities).
Private debt data for Turkey and Mexico is for 2017. General Government debt data is used except for Korea, South
Africa, Argentina where Central Government debt has been used.