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Consider the following statements regarding the recent trend in India's external debt.
1. US dollar denominated debt continued to be the largest component of India's external debt.
2. Non-resident deposits remained the largest component of the external debt.
3. The long-term debt constitutes more than twice the short-term debt in total external debt.
Which of the above statements is/are correct?
  • a)
    1 and 2 only
  • b)
    2 and 3 only
  • c)
    1 and 3 only
  • d)
    All of the above
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Consider the following statements regarding the recent trend in India...
India's external debt stood at USD 554.5 billion at end-June, recording a decrease of USD 3.9 billion over its level at the end of March 2020. Further, the external debt to GDP ratio increased to 21.8 per cent at June-end 2020 from 20.6 per cent as on March 31.
As per the data, commercial borrowings remained the largest component of external debt, with a share of 38.1 per cent, followed by non-resident deposits (23.9 per cent) and short-term trade credit (18.2 per cent).
The share of short-term debt in total external debt declined to 18.9 per cent as on June 30 from 19.1 per cent at end-March. The Reserve Bank said the US dollar denominated debt remained the largest component of India's external debt, with a share of 53.9 per cent at end-June followed by the Indian rupee (31.6 per cent), yen (5.7 per cent), SDR (4.5 per cent) and the euro (3.5 per cent).
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Consider the following statements regarding the recent trend in India's external debt.1. US dollar denominated debt continued to be the largest component of India's external debt.2. Non-resident deposits remained the largest component of the external debt.3. The long-term debt constitutes more than twice the short-term debt in total external debt.Which of the above statements is/are correct?a) 1 and 2 onlyb) 2 and 3 onlyc) 1 and 3 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding the recent trend in India's external debt.1. US dollar denominated debt continued to be the largest component of India's external debt.2. Non-resident deposits remained the largest component of the external debt.3. The long-term debt constitutes more than twice the short-term debt in total external debt.Which of the above statements is/are correct?a) 1 and 2 onlyb) 2 and 3 onlyc) 1 and 3 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the recent trend in India's external debt.1. US dollar denominated debt continued to be the largest component of India's external debt.2. Non-resident deposits remained the largest component of the external debt.3. The long-term debt constitutes more than twice the short-term debt in total external debt.Which of the above statements is/are correct?a) 1 and 2 onlyb) 2 and 3 onlyc) 1 and 3 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the recent trend in India's external debt.1. US dollar denominated debt continued to be the largest component of India's external debt.2. Non-resident deposits remained the largest component of the external debt.3. The long-term debt constitutes more than twice the short-term debt in total external debt.Which of the above statements is/are correct?a) 1 and 2 onlyb) 2 and 3 onlyc) 1 and 3 onlyd) All of the aboveCorrect answer is option 'C'. Can you explain this answer?.
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