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Debt-to-GDP Ratio
The debt-to-GDP ratio divides total government debt by the country’s annual GDP. It shows how heavy the debt burden is relative to the economy’s ability to support it. A falling ratio means the economy is growing faster than the debt.
Why It Matters
Bond markets and rating agencies watch this ratio more closely than any single year’s deficit.
In India
India’s central government expects its debt to be about 55.6% of GDP in 2026-27, and has made reducing this ratio its main fiscal anchor.