India's Fiscal Responsibility and Budget Management (FRBM) Act, 2003, aims to ensure fiscal discipline by mandating deficit targets. The Act sets fiscal deficit at 3% of GDP and revenue deficit elimination. Post-2020 pandemic, the glide path framework provides flexible timelines for achieving targets. Current fiscal deficit stands at 5.9% (2023-24 BE), with planned reduction to 4.5% by 2025-26. The NK Singh Committee recommended a debt-to-GDP ratio ceiling of 60% for general government.

The FRBM Act emerged from India's fiscal crisis of the 1990s when deficits spiraled uncontrollably. It institutionalized fiscal prudence by setting quantitative targets and requiring parliamentary approval for deviations. The glide path concept, refined after COVID-19, recognizes that rigid adherence during economic shocks can be counterproductive. It allows temporary deviations while maintaining medium-term fiscal consolidation commitment.

The mechanism works through annual budget presentations where the Finance Minister must justify any deviation and present a roadmap for returning to targets. State governments have their own FRBM Acts with similar provisions. The framework balances fiscal responsibility with growth imperatives, especially crucial for India's infrastructure needs and social spending requirements.

Real-world significance lies in maintaining investor confidence, controlling inflation through reduced government borrowing, and ensuring intergenerational equity. Rating agencies like Moody's closely monitor India's adherence to FRBM targets when assessing sovereign ratings. The glide path provides necessary flexibility while preventing fiscal profligacy that characterized the pre-FRBM era.