Consider the following statements:Most of India’s external debt is owed by governmental entities.All

Question

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

Accepted Answer

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 rupee (24.8 percent), SDR (5.1 percent), yen (4.9 percent) and euro (3.1 percent). Hence, Statement 2 is not correct.