Growth leads to debt sustainability, says Economic Survey
“With the Indian context of potential high growth, the interest rate on debt paid by the Indian government has been less than India’s growth rate by norm, not by exception,” it said.
Building a case that growth leads to debt sustainability in an emerging economy like India because of higher gross domestic product and lower interest rates, the Economic Survey 2020-21 said such clarity in direction of causation is not seen for advanced countries with lower growth rates.