Consider the following statements Most of India 39 s external debt is owed by governmental entities ...........

Economic Affairs Public Finance and Debt Management

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Consider the following statements:

Most of India's external debt is owed by governmental entities.
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

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Explanation:

Statement 1 is incorrect : The share of outstanding debt of non-financial corporations in total external debt was the highest at 40.4 per cent, followed by deposit-taking corporations (except the central bank) (28.2 per cent), general government (18.8 per cent) and other financial corporations (8.1 per cent). US dollar denominated debt remained the largest component of India's external debt, with a share of 52.1 per cent at end-March 2021, followed by the Indian rupee (33.3 per cent), yen (5.8 per cent), SDR (4.4 per cent) and the euro (3.5 per cent). Therefore, Statement 2 is also wrong.