India’s Debt Shock: Which State Owes the Most in 2025?
When talking about “highest debt,” it depends on how we measure it. Do we mean total debt in rupees? Or debt relative to the size of the state economy (GSDP)? Here’s a breakdown of both, with the latest data.
📊 Absolute Debt: Which State Owes the Most in Total
In absolute numbers, Maharashtra tops the list. It has one of the highest total outstanding liabilities among Indian states, largely due to its large population, extensive infrastructure projects, huge welfare & public works spending, and high cost of maintaining urban and rural services. :contentReference[oaicite:4]{index=4}
📉 Debt-to-GSDP Ratio: Which State Is Most Burdened Relative to Its Economy
When you measure debt relative to the size of the state’s economy, Jammu & Kashmir leads with around 51% debt-to-GSDP. Followed by Nagaland (~47.8%), Arunachal Pradesh (~45.9%), and Punjab (~44.5%). :contentReference[oaicite:5]{index=5}
Why this difference matters:
A state with high absolute debt but a large economy can service its debt more easily than a small‐economy state with debt almost equal to its GSDP.
💡 Other Noteworthy States
- States like Tamil Nadu, Karnataka, Uttar Pradesh & West Bengal report very high outstanding liability totals. :contentReference[oaicite:6]{index=6}
- Some smaller states / UTs with smaller economies show high debt ratios despite lower absolute debt. :contentReference[oaicite:7]{index=7}
🔍 Implications & What to Watch
- High debt ratios can squeeze budget flexibility — less room for health, education, or welfare spending.
- Interest payments grow rapidly; servicing the debt becomes a major line item.
- Credit ratings & investor confidence may be affected for states with weak revenues & high debt.
- Policymakers should focus on growth, revenue mobilization, and controlling non‐capital spending.
📢 Labels & Share
Labels: State Debt, Maharashtra, Jammu & Kashmir, Debt to GDP, India Finance
💬 Join the Conversation
What do you think about this news? Share your thoughts in the comments below — we’d love to hear from you!
(Your comment will appear after moderation to keep the discussion respectful.)
0 Comments