Consider the following statements : I. Most of India’s external debt is owed by governmental entities. II. All of India’s external debt is denominated in US dollars. Which of the statements given above is/are correct ?

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CollectorBabu · Accepted Answer

Correct Answer: Neither 1 nor 2. Most of India’s external debt is owed in the form of commercial borrowings (around 38%) followed by non-resident deposits (24%) and short term trade credit (around 20%). Most of India’s external debt is owed in US dollar (51.5%) but there’s a component of other currencies too like Indian rupee (34.7%), Yen (5.1%), Special Drawing Rights (4.7%) and Euro (3.2%). Hence both the statements are incorrect.

Consider the following statements : I. Most of India’s external debt is owed by governmental entities. II. All of India’s external debt is denominated in US dollars. Which of the statements given above is/are correct ?

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