Four states — Manipur, Nagaland, Punjab and Arunachal Pradesh – have a high debt to gross state domestic product (GSDP) ratio of over 40 per cent which raise a red flag, says a study by Bank of Baroda (BoB).
A high debt to GDP ratio indicates that debt and GDP of those economies are not well balanced and they don’t produce goods and services sufficient to pay back debts without incurring further debt.