Q13.
Consider the following statements: 1. Most of India’s external debt is owed by governmental entities. 2. All of India’s external debt is denominated in US dollars. Which of the statements given above is/are correct?
Answer
D
Explanation
• As per the Government report on External debt by December 2018-Commercial borrowings are the largest component of external debt with a share of 37.1 percent, followed by NRI deposits (23.9 percent) and short term trade credit (19.9 percent). Hence, Statement 1 is not correct. • US dollar denominated debt continued to be the largest component of India’s external debt with a share of 45.9 percent at end December 2018, followed by the Indian