Corporate News October 2020 - Acquisory Bulletin

Chandni Ansari12 Feb, 2025Business

INDIA’S INDEBTEDNESS REACHING AN INFLECTION POINT – IS THERE A SILVER LINING? The festival season may have masked underlying fears for our economy, and our equity markets may have rebounded amidst pandemic woes, but a looming worry is that Covid-19 will distort India’s Debt : GDP ratio to record high levels. As per Moody’s, amongst large emerging markets, India will have the highest debt burden by FY 21. A fall in tax revenue due to depressed economic activities coupled with an increase in public spending is expected to cause a steep 17 % points rise in India’s Debt : GDP ratio, stretching it to nearly 90%. That should ring alarmbellsforpolicymakers.