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    Question

    Which component accounted for the largest share of

    India’s external debt as of March 2025?
    A Currency & deposits Correct Answer Incorrect Answer
    B Debt securities Correct Answer Incorrect Answer
    C Loans Correct Answer Incorrect Answer
    D Trade credit Correct Answer Incorrect Answer
    E Rupee-denominated instruments Correct Answer Incorrect Answer

    Solution

    Loans formed the largest component of India’s external debt, accounting for 34%, followed by currency & deposits (22.8%), trade credit (17.8%), and debt securities (17.7%), indicating that long-term borrowings dominate India's external obligations.

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