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Top 10 countries with the highest debt -to-GDP in October 2025 list: The United States, the world’s largest economy, ranks 8th with a debt -to-GDP ratio of 125 per cent, while China (96.3 per cent) and India (81.4 per cent) rank 21st and 35th, respectively, lower than most developed nations. The Reserve Bank of India (RBI) reports that since 2019-20, Indian households have been taking on financial debt far more quickly than they are building financial assets. Effective debt management involves creating a budget, prioritizing high-interest debt repayment, and exploring strategies like debt consolidation or balance transfers. The outstanding debt of Indian states has seen a sharp rise over the past five years, reflecting increased borrowing amid economic challenges.
