Moody’s: India's fiscal flexibility hindered by high debt burden, weak debt affordability

Moody’s Investors Service is out with another report on Wednesday, this time on the Indian economic assessment, given the country’s high debt burden.

Key Quotes:

“India's fiscal flexibility hindered by high debt burden, weak debt affordability.

India's debt burden will rise unless nominal GDP growth increases durably above 11%.

Assume India real GDP growth at 6.3% in FY21 from rates of sub-5%, keep debt burden stable around 70% of GDP.

High India debt burden, weak debt affordability would constrain capacity to implement social, infra investment.”