India Non-Sovereign Debt Could Hit 150 Percent of GDP by 2047

Rating agency Crisil Limited projects that India's non-sovereign debt could rise from approximately 84 percent of GDP to 150 percent by 2047. This structural increase is framed as a necessity for the Government of India to achieve its Viksit Bharat vision of becoming a $30+ trillion economy.

Crisil Limited reports that the banking sector is unable to satisfy this credit demand independently, citing sluggish deposit growth and a credit-deposit ratio exceeding 82 percent as of March 2026. To bridge this gap, India must expand its debt capital market, which represented 22 percent of GDP at the end of fiscal 2026.

The agency recommends attracting patient-capital investors, including insurance and pension funds, and pursuing regulatory reforms to increase investment in municipal instruments and mid-rated bonds. These measures are intended to fund critical infrastructure, housing, and urban development.