Indian states set to witness remarkable improvement in deficit quality, India ratings study reveals

Sunil Kumar Sinha, principal economist at India Ratings, noted, "This also means borrowings are primarily used for capex and the focus on capex has remained intact," highlighting a strategic utilization of borrowed funds towards capital expenditure. The budgets analyzed represent states that collectively account for 96.1 percent of India's GDP, indicating a comprehensive assessment of the nation's fiscal health.