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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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