India using 'right policies' to lower high debt level: IMF
What's the story
India has "quite a high" level debt to GDP ratio, but New Delhi is trying to lower it using "the right policies", the International Monetary Fund has said. India's general government debt remained relatively high, at 70% of the GDP in 2017, said Abdel Senhadji, Deputy Director, IMF Fiscal Affairs Department, during a news conference in Washington. Here's more.
Debt level
Authorities are planning to bring down debt level
"The debt level is relatively high (in India), but the authorities are planning to bring it down over the medium term with the right policies," the Deputy Director Senhadji said. In the fiscal year 2017-18, the country is planning to continue with the consolidation in the current fiscal year and over the medium term, the top IMF official said.
Details
We believe the target of the authorities are appropriate: IMF
"They (Indian authorities) are, in fact, targeting their federal deficit of 3% over the medium term, and they are targeting also a debt ratio of 40% over the medium term at the federal level, which corresponds to about 60% at the general government level," Abdel Senhadji said. "And we believe that those targets are appropriate," the IMF official added.