+1 vote
in Class 12 by kratos

Why is India considered to be in a virtual debt trap?

1 Answer

+6 votes
by kratos
 
Best answer

India’* public debt is too high. The interest obligation on this debt is much more than the national income of the country. As a result, India has to borrow money to meet its interest obligation. This gives rise to more debt and even a higher interest obligation for future. Therefore, India is considered to be in a virtual debt trap.

...