Country’s economy is in danger: IMF

The country’s financial situation has deteriorated due to the coronavirus. The country’s debt, loan and GDP or GDP ratio has reached record levels. In 2020, the debt-to-GDP ratio has risen from 74 percent to 90 percent. This is according to a report by the International Monetary Fund (IMF).

According to the IMF, if India’s gross domestic product was Rs 100 in 2020, the debt burden would have been Rs 80. In 2020, the country’s gross domestic product (GDP) was Rs 18 lakh crore and loans were Rs 1.8 lakh crore. However, due to the measures taken to improve the economy in the country, the ratio could drop to 80 percent.

Paolo Maro, IMF’s deputy director of finance, said India’s debt and GDP ratio was 8 percent in 2014 before the corona epidemic. But by 2020, it has reached 90 percent. Which is a lot. If India’s economy improves, debt and GDP ratios will improve. In that case, the ratio will drop to 40 percent. First, look at the most affected sectors in the government.

Notably, the total debt burden of any country is made up of loans taken by the central and state governments. It is divided by the country’s GDP to create a debt-to-GDP ratio.

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