If you lay $1 note on top of each other, they would make a pile 126,786 km ( 78,781 miles) high or equivalent to 0.33 trips to the Moon! or the total current debt of India.
India has ₹ 77,622,505,064,395 debt to pay back.
Total population of 1,325,000,000. Which means ₹58,583 Debt per Citizen.
51.38% of India’s GDP (₹151,074,447,685,400).
[Debt Means a sum of money that is owed or due]
India Pays ₹159,722 Interest per Second. Which means ₹5,036,986,148,190 per year.
You could wrap $1 note around the Earth 4,519 times with this debt amount!
As compared to India, The total amount of Credit in US is about $50 Trillion but the total amount of actual money is only around $3 Trillion.
Still according to S&P credit rating agency, India holds BBB- rating (Stable) and US holds AA+.
[For S&P, a bond is considered investment grade if its credit rating is BBB- or higher. Bonds rated BB+ and below are considered to be speculative grade]
The question here is, why so much debt/credit?
Because: In an economy without credit the only way to increase your spending is to produce more but in an economy with credit you can also increase your spending by borrowing.
As a result an economy with credit has more spending and allows income to rise faster than productivity over the short run but not over the long run.
[Author is SEBI Registered Research Analyst].