The Sen Times

India fiscal policy to turn pro-growth as government moves to target debt-to-GDP, economists say

MUMBAI, Jan 21 (Reuters) Indias fiscal policy is expected to turn more growth-supportive as the federal government shifts to targeting the debt-to-GDP ratio starting April 2026, several economists said in notes ahead of the annual budget on February 1. Until now, the government targeted the fiscal deficit, which will be lowered to a targeted 4.4% of GDP for the year ended March 2026 from 9.2% in 2020-21. The shift to debt-to-GDP as the key fiscal measure will result in a more modest pace of tightening, supporting growth, economists said. We believe government will look to target 55% of GDP