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?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC IAS – 2019
Statement 2 is incorrect. India’s external debt is denominated in multiple currencies. While the US dollar is the dominant currency, a significant portion is also denominated in Indian Rupees (e.g., Rupee Denominated Bonds held by non-residents), SDRs, Japanese Yen, Euro, and other currencies. Therefore, not all of India’s external debt is denominated in US dollars.