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    Question

    Which currency accounted for the highest share of

    India’s external debt in FY25?
    A Indian Rupee – 31.1% Correct Answer Incorrect Answer
    B Japanese Yen – 6.2% Correct Answer Incorrect Answer
    C Euro – 3.2% Correct Answer Incorrect Answer
    D US Dollar – 54.2% Correct Answer Incorrect Answer
    E SDR – 4.6% Correct Answer Incorrect Answer

    Solution

    The US dollar continued to dominate India’s external debt composition, making up 54.2% of the total in FY25. It was followed by the Indian Rupee (31.1%), yen (6.2%), SDR (4.6%), and euro (3.2%). This composition underscores India’s dependence on dollar-denominated obligations, though overall sustainability is supported by adequate reserves and a higher share of long-term borrowings.

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