The Indian public sector debt, which has grown at a compound annual growth rate of almost 5 per cent, surpassed $1 trillion as of the end of September, according to a new report by the Indian Statistical Service (ISSD).
The ISSD also found that the government’s fiscal deficit was $800 million, with public sector sector debt rising by $500 million to $1,854 billion.
The country’s debt-to-GDP ratio rose to 126 per cent in September, the highest since 2010.
It was the second highest among G20 countries, ahead of the United States, at 137 per cent.
India’s public sector is currently paying off about $600 billion of its $1 billion debt burden.
India has more than 7,400 public sector companies and public banks.
The government has $7.3 trillion in debt.
Public debt is calculated on a debt-based basis, meaning it does not include the government bonds and corporate debt.
In the last three years, India’s public debt has risen at a faster rate than the gross domestic product, the main measure of the economy, at 6.5 per cent annually.