When India’s economy was zipping along, the borrowing did not matter so much. For a while, the national debt actually fell as a proportion of GDP, despite high budget deficits (the ratio is about 70% today). But now, with slower growth, a debt spiral is a real risk. Borrowing has taken a heavy toll. It has fuelled inflation and a balance-of-payments gap, while crowding out the private investment in factories and infrastructure that India badly needs. Article