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CPT Section C General Economics Chapter 6 Unit 8  
Manish Dua 
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CPT Section C General Economics Chapter 6 Unit 8  
Manish Dua 
External assistance to India has been in two forms – grants and loans. 
While grants do not involve any repayment obligation, loans carry an 
obligation to pay interest and repay the principal. 
. About 90 per cent of the external assistance received by India has been in 
the form of loans.  
These loans have been from different sources like World Bank, International 
Monetary Fund (IMF), International Development Association, U.S.A., U.K., Japan, 
etc. 
Page 3


CPT Section C General Economics Chapter 6 Unit 8  
Manish Dua 
External assistance to India has been in two forms – grants and loans. 
While grants do not involve any repayment obligation, loans carry an 
obligation to pay interest and repay the principal. 
. About 90 per cent of the external assistance received by India has been in 
the form of loans.  
These loans have been from different sources like World Bank, International 
Monetary Fund (IMF), International Development Association, U.S.A., U.K., Japan, 
etc. 
A large part of the loan, especially from multilateral and 
bilateral agencies has high degree of concession ability i.e. 
grant element of at least 25 per cent. The share of 
concessional debt in total debt is about 16 per cent in june 
2010. At one time (1980–81) it was as high as 75 per cent. 
India’s external debt amounted to Rs. 13,470 crore at the 
end of March, 1981. As liberal use of borrowing has been 
made every since then, the external debt stood at more than 
Rs. 4,80,000 crore in March, 2001–02 and nearly  Rs. 
13,50,000 crore in March 2011. 
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CPT Section C General Economics Chapter 6 Unit 8  
Manish Dua 
External assistance to India has been in two forms – grants and loans. 
While grants do not involve any repayment obligation, loans carry an 
obligation to pay interest and repay the principal. 
. About 90 per cent of the external assistance received by India has been in 
the form of loans.  
These loans have been from different sources like World Bank, International 
Monetary Fund (IMF), International Development Association, U.S.A., U.K., Japan, 
etc. 
A large part of the loan, especially from multilateral and 
bilateral agencies has high degree of concession ability i.e. 
grant element of at least 25 per cent. The share of 
concessional debt in total debt is about 16 per cent in june 
2010. At one time (1980–81) it was as high as 75 per cent. 
India’s external debt amounted to Rs. 13,470 crore at the 
end of March, 1981. As liberal use of borrowing has been 
made every since then, the external debt stood at more than 
Rs. 4,80,000 crore in March, 2001–02 and nearly  Rs. 
13,50,000 crore in March 2011. 
As per cent of GDP, India’s external debt was 11.7 per cent in 1990–91, it became 21 per 
cent in 2001–02 but then it declined to 18 per cent in end of 2010. 
Debt-service payments (i.e. returning of principal and interest) 
As a percentage of current receipts was as high as 35.3 per cent in 1990–91, but it 
declined to 13.7  per cent in 2001-02  and further to 4.2 per cent in 2010–11 
In the term of indebted ness India’s debt has decreased since 1999. India ranks third 
among the top 15 debtor countries in the world according to the Global Development 
Finance 1991, (World Bank).Its rank was ninth  in 2001 and fifth in 2008 and 2010. 
Page 5


CPT Section C General Economics Chapter 6 Unit 8  
Manish Dua 
External assistance to India has been in two forms – grants and loans. 
While grants do not involve any repayment obligation, loans carry an 
obligation to pay interest and repay the principal. 
. About 90 per cent of the external assistance received by India has been in 
the form of loans.  
These loans have been from different sources like World Bank, International 
Monetary Fund (IMF), International Development Association, U.S.A., U.K., Japan, 
etc. 
A large part of the loan, especially from multilateral and 
bilateral agencies has high degree of concession ability i.e. 
grant element of at least 25 per cent. The share of 
concessional debt in total debt is about 16 per cent in june 
2010. At one time (1980–81) it was as high as 75 per cent. 
India’s external debt amounted to Rs. 13,470 crore at the 
end of March, 1981. As liberal use of borrowing has been 
made every since then, the external debt stood at more than 
Rs. 4,80,000 crore in March, 2001–02 and nearly  Rs. 
13,50,000 crore in March 2011. 
As per cent of GDP, India’s external debt was 11.7 per cent in 1990–91, it became 21 per 
cent in 2001–02 but then it declined to 18 per cent in end of 2010. 
Debt-service payments (i.e. returning of principal and interest) 
As a percentage of current receipts was as high as 35.3 per cent in 1990–91, but it 
declined to 13.7  per cent in 2001-02  and further to 4.2 per cent in 2010–11 
In the term of indebted ness India’s debt has decreased since 1999. India ranks third 
among the top 15 debtor countries in the world according to the Global Development 
Finance 1991, (World Bank).Its rank was ninth  in 2001 and fifth in 2008 and 2010.