With reference to India’s external debt, consider the following:

1. Commercial Borrowings

2. NRI deposits

3. Multilateral debt

Which among the following is the correct decreasing order of fraction the above in external debt?

Answer: [A] 1 2 3

India’s external debt was placed at $456 billion at the end of September, 3.1% higher than what it was at end-March 2014. The rise in external debt during the period was due to long-term external debt particularly commercial borrowings and NRI deposits, the finance ministry said in a statement. Long-term debt was $ 369.5 billion, an increase of 4.7% over March. Short term debt declined 3.2% to $ 86.4 billion. Short-term debt accounted for 18.9% India’s total external debt at end-September 2014. Commercial borrowings had the highest 35.4% share in total external debt, followed by NRI deposits at 23.8% and multilateral debt 11.7%.

Concessional debt was 9.8% of total end-September 2014 was lower than 10.5% at end-March 2014. Foreign exchange reserves covered 68.9% of total external debt and the ratio of short-term external debt to foreign exchange reserves was at 27.5%, suggesting comfortable external debt situation.

This question is a part of GKToday's Integrated IAS General Studies Module