question_answer

In 2013, the rise in India's external debt was mainly due to

A)  External Commercial Borrowings (ECBs)

B)  Multi-lateral Borrowings

C)  Trade Credits

D)  NRI deposits

Correct Answer: D

Solution :

[d] External debt (or foreign debt) is the total debt a country owes to foreign creditors. The debtors can be the government, corporations or citizens of that country. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the International Monetary Fund (IMF) and World Bank. [India's External Debt at end-March 2015 stood at US475.8 Billion, reflecting an increase of US29.5 Billion (6.6 Percent) over the level at end-March 2014; Rise in External Debt was due to the rise in Long-Term Debt particularly Commercial Borrowings and NRI Deposits.