India’s central bank has highlighted financial stress in many states

India’s five most indebted states—Punjab, Rajasthan, Bihar, Kerala, and West Bengal—need to fix their fiscal conditions with corrective action, a study by the Reserve Bank of India (RBI) has suggested.

“The recent economic crisis in neighbouring Sri Lanka is a reminder of the critical importance of public debt sustainability. The fiscal conditions among states in India are showing warning signs of building stress,” an article published by RBI last week has said.

These findings mostly confirm an article published earlier by Quartz.

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