India’s Debt Problem: A Big Worry for Our Future

India’s Debt Problem: A Big Worry for Our Future

Imrana argues that too much of the borrowed money is being used in India just to repay old loans or fund short-term political schemes.

By Imrana

Every time I scroll through the news these days, I see another headline about India’s rising debt. As a student, I used to wonder—why should I care about something like “government debt”? But the more I read and learn, the more I realise: this isn’t just a topic for economists or politicians. It’s about our future—our jobs, our education, our healthcare, and the kind of country we’ll grow up in.

Yes, governments borrow money. Even the richest nations do. The United States, for example, has a national debt of over $37 trillion. That sounds scary. Yet the U.S. remains one of the most powerful economies in the world. So clearly, having debt isn’t automatically bad. The real question is: how is that borrowed money being used?

Borrowing Isn’t the Problem—Wasting It Is

Borrowing money isn’t wrong when it’s used for the right reasons—like building highways, improving schools, investing in healthcare, or funding clean energy. In fact, such investment is often necessary for a developing country.

But in India, too much of the borrowed money is being used just to repay old loans or fund short-term political schemes. These include free electricity, loan waivers, or other promises that might win votes but don’t create lasting change. That’s where the real danger lies.

When borrowing becomes a habit—just to patch holes instead of building a future—it leads to a cycle of debt, where interest payments keep rising and governments are forced to cut spending in essential areas like education and healthcare.

Imrana’s Insight Podcast on the Debt Problem

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What the UN Is Warning Us About

At the recent United Nations Financing for Development Forum (FFD4), global leaders discussed this very issue. The UN report revealed that many developing countries are spending more on debt payments than on health or education. That means the money that should be building schools, training doctors, or protecting the environment is instead being sent to creditors.

The UN Secretary-General said that debt is turning from a “tool for development into a trap,” especially when it’s not managed well. If this continues, inequality will grow, public services will collapse, and young people—like us—will face a future full of limitations.

India, sadly, is also on this path.

Debt Without Growth = Trouble

India’s total government debt crossed ₹155 lakh crore in 2024. That’s not just a number—it’s a burden we will all carry, especially if it’s not used wisely.

The more we borrow without boosting productivity, innovation, or employment, the harder it becomes to repay those loans. And when interest payments take up a large part of the government budget, there’s less money left for things that matter to ordinary people.

• Schools don’t get proper funding.
• Roads remain broken.
• Government hospitals face shortages.
• Public jobs shrink.
• Startups and industries get less support.

When all these areas suffer, development slows down—and so does our future.

But What About the U.S. and Other Rich Countries?

It’s true—countries like the U.S., Japan, and the U.K. also have huge debts. But here’s the difference: they usually borrow to invest in long-term national growth, and their economies are strong enough to handle those repayments.

Also, they have stable governance, strong institutions, and transparency in public spending. Their systems are far from perfect—but there’s better monitoring, more accountability, and a clear plan behind borrowing.

That’s what India needs to focus on.

How Can India Manage Better?

We don’t need to stop borrowing altogether. But we do need to become more responsible with how and why we borrow. Here’s what can help:

1. Transparency: Every borrowed rupee should be accounted for. Citizens should know how much is being borrowed, and what for.
2. Smart spending: Invest in infrastructure, digital systems, green energy, and education—not just election-time freebies.
3. Strict accountability: If public funds are misused, there should be real legal consequences.
4. Learning globally: India can study successful debt strategies from developed countries, but adapt them to fit local needs.

If we invest borrowed money into areas that generate long-term growth, like jobs, industries, innovation, and quality education, we’ll not only be able to repay loans—but we’ll grow stronger as a nation.

Why This Matters to Us

As students, we may not control national budgets or vote on finance bills. But we are the ones who will live with the results of today’s decisions.

If government money is used carelessly today, we might not get the quality education, healthcare, or career opportunities we deserve tomorrow. If policies continue to focus only on short-term gains, the youth will pay the price.

Debt isn’t the enemy. But irresponsible borrowing is. India has incredible potential—young talent, creativity, energy, and ambition. But that potential can be wasted if it’s buried under debt that brings no growth.

We need leaders who think ahead, borrow smartly, and invest in a future that includes everyone. We also need citizens—especially young people—who ask questions, stay informed, and speak up.

Because this isn’t just about numbers in a spreadsheet. It’s about the kind of future we want to live in.

This consultative article has been written exclusively for RMN News by Imrana, who is a student specializing in multiple domains such as business, trade, education, technology, entertainment, and politics. She also produces Imrana’s Insight podcast program on diverse topics.

👉 You can click here to know more about Imrana’s editorial and humanitarian work.

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