Question
Most of the debt held by India are:
Solution
Most of the debt held by India are: In private sector- Around 80% of the debt are taken by private sectors trough various means such as External Commercial Borrowing (ECB), Bonds etc. Long term- About 85% of our debt are long-term. This means there is no urgent need to repay the principle. Also the interest rate on long term bonds are generally lower. Dominance of short term loan always creates stress on forex reserve. Dollar denominated- Most debt are dollar denominated which means those have to be repaid (both interest and capital) in dollar.Ā
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