Consider the following statements: 1. Most of India's external debt is owed by governmental entities. 2. All of India's external debt is denominated in US dollars. Which of the statements given above is/are correct?

Let's analyze each statement regarding India's external debt:

1. Most of India's external debt is owed by governmental entities. This statement is incorrect. A significant and often dominant portion of India's external debt is owed by the non-government sector, primarily commercial borrowings by corporates and non-resident Indian (NRI) deposits. While governmental external debt exists, it typically constitutes a smaller share compared to the overall external debt burden.

2. All of India's external debt is denominated in US dollars. This statement is incorrect. While the US dollar is the single largest currency in which India's external debt is denominated, a substantial portion is also denominated in other major international currencies such as the Japanese Yen, Euro, Pound Sterling, and Special Drawing Rights (SDRs). Additionally, a small portion of debt, particularly NRI deposits, may also be denominated in Indian Rupees.