Consider the following statements 1 India 39 s sovereign external debt as a per cent of GDP stands a...........

Economic Affairs Public Finance and Debt Management

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Consider the following statements:

1. India's sovereign external debt as a per cent of GDP stands at less than 10%.

2. India's total external debt is greater than that of India's foreign reserves.

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:

Explanation:
India's sovereign external debt as a per cent of GDP stood at a mere four per cent as of September 2020 (DEA). Moreover, 54 per cent of India's sovereign external foreign currency-denominated debt was owed to multilateral and IMF as of end-March 2020 (DEA). So, statement (1) is correct. India's forex reserves stood at US$ 584.24 as of 15 January, 2021 (RBI), greater than India's total external debt (sovereign and non-sovereign) of US$ 556.2 bn as of September 2020 (DEA). So, statement (2) is not correct.