The correct answer is (b).
A State of the Indian Union is not empowered under the Constitution to take foreign loans directly. The Constitution of India, Article 292, states that “No State shall without the consent of the Government of India raise any loan or make any gift or agreement involving any expenditure from the Consolidated Fund of the State unless the terms of the loan, gift or agreement have been approved by the President.”
This means that any loan that a State of the Indian Union takes must be approved by the Government of India. The Government of India, in turn, is represented by the Reserve Bank of India. Therefore, a State of the Indian Union can only take foreign loans with the permission of the Reserve Bank of India.
Option (a) is incorrect because the Constitution of India does not empower a State of the Indian Union to take foreign loans directly. Option (c) is incorrect because the Constitution of India does not require a State of the Indian Union to obtain the permission of the Reserve Bank of India before taking foreign loans. Option (d) is incorrect because the Constitution of India does not require a State of the Indian Union to obtain the permission of the Government of India before taking foreign loans.