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India government debt-to-GDP, year by year — Centre, States & general government

Q: What is India's debt-to-GDP ratio?

India's General Government debt — the combined outstanding liabilities of the central and state governments — is roughly 82% of GDP, down from a peak near 88% in FY2020-21 during COVID-19. The central government alone accounts for about 57% of GDP and the states for about 28%. The combined figure is consolidated, so it is less than simply adding the two. These figures are approximate and are revised periodically.

Q: Why did India's debt-to-GDP jump in 2020-21?

Two things happened at once during COVID-19: governments borrowed much more to fund relief and lost revenue, while nominal GDP — the denominator of the ratio — shrank. Both pushed the debt-to-GDP ratio up sharply, with General Government debt rising to roughly 88% of GDP. As the economy and nominal GDP rebounded strongly afterwards, the ratio came back down even though the rupee value of debt kept rising.

Q: How is government debt different from the fiscal deficit?

The fiscal deficit is a flow — the gap between spending and non-borrowed receipts in a single year. Government debt is the stock — the cumulative outstanding borrowing built up over many years of deficits. Each year's deficit adds to the debt. So the deficit tells you how fast borrowing is growing this year, while the debt-to-GDP ratio tells you the total burden relative to the size of the economy.

Q: Why does government debt matter for banks?

Banks are the largest holders of government securities, partly because the Statutory Liquidity Ratio (SLR) requires them to hold a minimum share of deposits in such bonds. A higher debt stock means more issuance and a heavier supply of G-Secs, which can lift yields and the cost of funds and create mark-to-market gains or losses on banks' bond portfolios. Government debt sustainability also shapes sovereign ratings and overall financial-market conditions in which banks operate.

Quick answerIndia’s General Government debt (Centre+States, consolidated) peaked near 88% of GDP in FY2020-21 during COVID-19, then eased to about 84% (FY2021-22), 81% (FY2022-23) and roughly 82% since. The Centre runs about 57% of GDP and the States about 28%. The combined figure is not a simple sum — inter-governmental holdings are netted out. Debt is the cumulative stock that each year’s fiscal deficit adds to, and it drives G-Sec yields and bank bond books. Figures are approximate and revised periodically.

The chart shows outstanding government debt (% of GDP) for the Centre, the States combined and General Government; the table below carries the same figures so the page is readable without JavaScript — for accessibility and AI answer engines.

Outstanding government debt (% of GDP)

Fiscal year	Centre	States	General Govt	Note
FY2019-20	51%	25%	75%	Pre-pandemic baseline
FY2020-21	61%	31%	88%	COVID-19 peak — debt spiked as GDP fell
FY2021-22	59%	29%	84%	Nominal-GDP rebound lowered ratios
FY2022-23	57%	28%	81%	Gradual decline
FY2023-24	58%	28%	82%	Broadly stable
FY2024-25	57%	29%	82%	Provisional / RE, subject to revision

Figures are official estimates, rounded and approximate, drawn from the Union Budget / Status Paper on Government Debt, the RBI Handbook of Statistics and the IMF Fiscal Monitor; later years are provisional and revised in subsequent vintages. General-government debt is consolidated (inter-governmental holdings netted out), so it is lower than Centre + States added together. For exact latest figures see the sources linked below.

What it means for bankers

Government debt is the cumulative counterpart to the annual fiscal deficit: every year’s borrowing adds to the stock. Banks are the system’s biggest holders of government securities — partly because the SLR requires it — so a larger debt stock means heavier issuance, which can lift yields and the cost of funds and swing the mark-to-market on bank bond portfolios. The COVID-era spike toward ~88% of GDP and the gradual decline since shape the backdrop for liquidity, sovereign ratings and the conditions in which banks fund themselves. The RBI manages the borrowing programme and weighs debt sustainability alongside inflation and the repo rate.

Key terms in this dataPlain-English definitions of the terms behind this dashboard — see the full Indian banking glossary. SLR · Repo rate

More live dataExplore BankPulse’s other live RBI dashboards: Fiscal Deficit · G-Sec Yields · Real GDP Growth · External Debt.

India government debt FAQ

What is India's debt-to-GDP ratio?

India's General Government debt (Centre+States combined) is roughly 82% of GDP, down from a peak near 88% in FY2020-21. The Centre alone is about 57% of GDP and the States about 28%. The combined figure is consolidated, so it is less than simply adding the two. Figures are approximate and revised periodically.

Why did India's debt-to-GDP jump in 2020-21?

During COVID-19 governments borrowed much more while nominal GDP — the denominator — shrank, so the ratio rose sharply, with General Government debt near 88% of GDP. As nominal GDP rebounded afterwards the ratio eased even as the rupee value of debt kept rising.

How is government debt different from the fiscal deficit?

The fiscal deficit is a yearly flow — the gap between spending and non-borrowed receipts. Government debt is the stock — the cumulative borrowing built up over years of deficits. Each year's deficit adds to the debt; the debt-to-GDP ratio shows the total burden relative to the economy.

Why does government debt matter for banks?

Banks are the biggest holders of G-Secs, partly because the SLR requires it. A higher debt stock means more bond issuance, which can lift yields and the cost of funds and move banks' mark-to-market on their bond books. Debt sustainability also shapes sovereign ratings and market conditions for banks.

Methodology & sources: see how BankPulse dashboards are sourced, verified & updated · machine-readable government-debt JSON feed.

Last reviewed 19 Jun 2026 by Vikram Jain

Source: Union Budget / Status Paper on Government Debt (indiabudget.gov.in), RBI Handbook of Statistics on the Indian Economy and the IMF Fiscal Monitor, rbi.org.in. Figures are official estimates, revised periodically (BE → RE → provisional → actual); we never reproduce source text verbatim. Reviewed by Vikram Jain. Last updated 19 Jun 2026, 03:30 IST.