Debt-to-GDP ratio may rise to 87.6%: SBI arm

New Delhi: The economic turbulence due to Covid-19 is expected to push India's debt-to-GDP ratio higher, according to a SBI Ecowrap report on Monday. Together with the declining GDP growth, debt-to-GDP ratio has been adversely affected in all countries.

"India's debt-to-GDP ratio has increased gradually from Rs 58.8 lakh crore (67.4 per cent of GDP) in FY12 to Rs 146.9 lakh crore (72.2 per cent of GDP) in FY20," it said. Higher borrowing this fiscal was likely to increase the gross debt to around Rs 170 lakh crore (87.6 per cent of GDP), it added.

According to the report, external debt is estimated to increase to Rs 6.8 lakh crore (3.5 per cent of GDP) in the expected gross debt for FY21.