Panch Tattva Wisdom

India’s Debt-to-GDP Is Rising — Here’s a Smarter Way Forward

India’s general government debt has risen from 67% of GDP in 2014 to 82%+ in 2024.
This rise is happening despite strong GDP growth, meaning debt is expanding faster than the economy.

While heavy infrastructure investment is essential, funding everything through government borrowing is not sustainable in the long run. A smarter, fiscally balanced model is needed.

—

⭐ A Better Approach: Corporatize & Monetize Infrastructure

1️⃣ Build major infrastructure through government-owned corporations (SPVs/PSUs)

Keeps project costs off the central government balance sheet.

Offers professional governance and financial clarity.

2️⃣ Support them until they become viable

Provide initial subsidies or guarantees to ensure stability.

3️⃣ List these corporations on the stock market

Attract domestic and global long-term capital.

Improve transparency and efficiency.

4️⃣ Government sells part of its stake

Unlocks the value of completed infrastructure.

5️⃣ Use the proceeds to reduce public debt

Moderates India’s debt-to-GDP ratio without slowing development.

—

⭐ Impact

✔ Infrastructure growth continues at full speed
✔ Government debt becomes more manageable
✔ Citizens and institutions participate in nation-building
✔ India strengthens its long-term fiscal stability