The fall in non-financial corporate core debt suggests deleveraging by large corporations as well as a lack of CAPEX by India Inc.
According to the Bureau of International Settlement (BIS), the core debt of India’s overall non-financial sector increased from 162.3% of GDP to 170.3% of GDP between 2017 and June 2022. Sum of household, government and private non-financial corporate debt. Rising household and government debt led to an increase in core debt in the Indian non-financial sector.
GLOBAL DEBT OUTLOOK
Governments in all regions have accumulated debt over the past five years. In nominal terms, the public debt of all reporting economies increased from US$59.95 trillion to US$79.62 trillion between 2017 and June 2022. During the same period, the US national debt has increased from $18.86 trillion to $27.74 trillion.
Total credit to the non-financial sector across all reporting economies increased from US$180.9 trillion in 2017 to US$221.9 trillion in June 2022. Of the $41 trillion increase, the bulk of the $15.53 trillion in debt is accounted for by the US, where the debt is high, rising to $64.47 trillion from $48.94 trillion. Similarly, China also experienced a $19.2 trillion debt explosion, with non-financial sector debt rising from $32.69 trillion to $51.87 trillion. For emerging markets, core non-financial debt has increased to $81 trillion from $56.39 trillion.
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