Debt to GDP ratio indicates debt of the government as a percentage of GDP. It shows the level of indebtedness of the government. Usually, debt GDP ratio is expressed as the debt of the central government as a percentage of GDP and the debt of the general government (central and states together) as a percentage of GDP.
As on March 2017, the Debt-GDP ratio of the central government is around 48% of GDP. For the centre and states together, this is around 68% of GDP. Main thrust of the government’s fiscal consolidation effort is to bring down the Debt-GDP ratio.
