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Indian Economy - Understanding the basics of Indian economic system

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    The following sentences have been given in a jumbled manner. Un-jumble the sentences and answer the option which describes the order of sentences in a correct manner.

    A. India's government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign, the country's banking system may not be robust enough to do the job on its own

    B. India's micro, small and medium enterprise(MSME) ministry is discussing the proposal to pull in foreign banks with the country's ministry of finance, which will make a final call.

    C. The push for foreign loans comes on the heels of the Indian government's announcement earlier this month that it plans to borrow about 700 billion rupees by issuing overseas sovereign bonds.

    D. The government is in discussions with multiple foreign lenders, including Germany's state-owned development bank KfW Group, the World Bank and some Canadian institutions to extend lines of credit to small enterprises

    E. One official said that the government plans to source up to 1 trillion Indian rupees of loans from foreign institutions because Indian banks were not in a position to provide enough capital for the small business sector, which is seen as critical to job creation.

    This questions was previously asked in
    SBI PO Mains (20 Jul, 2019)

    ABCED 

    Incorrect Answer

    ACDEB 

    Correct Answer

    BCDEA 

    Incorrect Answer

    CBADE

    Incorrect Answer

    EDCBA

    Incorrect Answer
    Explanation:

    - A: Introduces the government’s discussions with foreign lenders for $14.5 billion for small firms, indicating issues within the nation’s banks.

    - C: Indicates the broader context of the government’s borrowing plans following its announcement to issue overseas sovereign bonds.

    - D: Elaborates on the discussions with various foreign lenders, like KfW Group and the World Bank, for credit lines for small enterprises.

    - E: Emphasizes the need to source up to 1 trillion Indian rupees from foreign institutions due to Indian banks' lack of capital.

    - B: Concludes with the MSME ministry's discussions with the finance ministry to finalize the plan for pulling in foreign banks.

    The correct sequence logically connects the government's intent, context, parties involved, and urgency, making option 2: ACDEB the correct answer.


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