Consider the following:

1. External Commercial Borrowings

2. NRI Deposits

3. Inward Remittances

Which among the above is / are part of India’s external debt?

Answer: [A] Only 1 & 2

In recent times, the rise in external debt was on account of higher long-term debt particularly commercial borrowings and non-resident Indian (NRI) deposits. The main four main components of External debt are External Assistance, Commercial Borrowings, Short term Trade Credit and NRI deposits.

Kindly note that Inward remittances may include the profits, earnings abroad, so this term will be simply omitted looking at the language of the question.

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