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IMF Article IV Report: India's Debt-to-GDP Ratio Projected to Decline.

Economy & Business | Dated: 22 Dec 2025

The International Monetary Fund (IMF) released its annual Article IV Consultation report on India. It projects that India's General Government Debt-to-GDP ratio will decline to 81% by FY 2028-29, down from the peak of 88% during the pandemic. The report praised India's prudent fiscal management and robust growth.

🎯 Key Highlights:

  • IMF forecasts India to grow at 6.3% in FY25 and FY26.
  • However, it warned that the debt ratio could rise to 100% in a worst-case scenario involving extreme shocks.
  • The Indian government disagreed with the "extreme scenario" projection, terming it as highly unlikely.

💡 Other Important Facts:

  • Report: Article IV Consultation.
  • Projection: Debt-to-GDP 81% (2029).
  • Observation: Robust Growth.

📚 Test Your Knowledge:

According to the IMF Article IV report, India's Debt-to-GDP ratio is projected to decline to what percentage by FY 2028-29?

Correct Answer: 81%

🚀 Quick Recap:

About IMF

  • MD – Kristalina Georgieva
  • HQ – Washington D.C.