UPSC Prelims 2002·GS1·economy·open economy

India’s external debt increased from US $98,158 million as at the end of March 2000 to US $100,225 million as at the end of March 2001 due to increase in

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  1. Amultilateral and bilateral debtCorrect
  2. Brupee debt
  3. Ccommercial borrowings and NRI deposits
  4. Dborrowing from International Monetary Fund

Explanation

The correct answer is A because during the period between March 2000 and March 2001, the primary drivers for the marginal rise in India s external debt were multilateral and bilateral components. Multilateral debt refers to loans from international institutions like the World Bank and Asian Development Bank, while bilateral debt refers to loans from individual sovereign nations. While other components like NRI deposits also saw changes, the official economic data for that specific fiscal cycle attributed the majority of the debt increase to these two categories. Borrowings from the International Monetary Fund actually declined during this period as India was moving toward a more stable external position.
economy: India’s external debt increased from US $98,158 million as at the end of March 2000 to US $100,225 million as at the end
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