India's debt with reference to Gross domestic product  (GDP) ratio increased from 74 percent to 90 percent during the COVID-19 pandemic, the International Monetary Fund  (IMF) has said, noting that it expects this to drop down to 80 percent as a result of the country's economic recovery.

 Paolo Mauro, Deputy Director, IMF's Fiscal Affairs Department told reporters at a news conference here on Wednesday, "In the case of India, the debt ratio at the end of 2019, prior to the pandemic, was 74 percent of Gross Domestic Product (GDP), and at the end of 2020, it is almost 90 percent of GDP. So, that's a very large increase, but it is something that other emerging markets and advanced economies have experienced as well." "And, for the case of India going forward, in our baseline forecast, we expect that the debt ratio will gradually come down as the economy recovers.

In our baseline forecast under the assumption of healthy economic growth in the medium term, we see debt returning to about 80 percent over time," Mauro said. Responding to a question, he said that the immediate priorities are to continue supporting people and firms, and, in particular, to focus on supporting the most vulnerable.

Simultaneously, it is important to reassure the general public and investors that public finance is under control and the way to do so is through a credible medium-term fiscal framework.

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