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

Question

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?

Accepted Answer

India's external debt comprises both government and non-government liabilities. While a significant portion is held by government entities, non-government entities also hold substantial external debt. Furthermore, India's external debt is denominated in various major currencies, not exclusively US dollars. Currencies like the Euro, Yen, and Special Drawing Rights (SDR) also form part of the external debt composition.