India is shifting its primary fiscal target from fiscal deficit to government debt-to-GDP ratio starting in 2026-27. The goal is to reduce the central government debt-to-GDP ratio to 50% by March 2031. This change offers increased spending flexibility during crises while maintaining fiscal prudence through debt restraint. It also invites greater scrutiny on revenue generation and debt servicing capabilities. India's current debt levels are considered moderate compared to other emerging and advanced economies, showing a downward trend since 2004.